According to Wccftech, AMD has surprisingly received US export licenses for its China-specific Instinct MI308 AI chips during its Q3 earnings call. CEO Lisa Su confirmed the company now has “certainty” about its China AI market solution while NVIDIA remains in deadlock over its Blackwell and H20 chip approvals. The MI308 chips are designed as competitive alternatives to NVIDIA’s blocked H20 accelerators and comply with current US export controls. However, AMD isn’t including any MI308 revenue in its Q4 guidance, calling the situation “pretty dynamic” and still working with customers on demand. This development comes as Chinese authorities show increasing hostility toward NVIDIA’s tech stack, potentially giving AMD a slim edge in the massive Chinese AI market.
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AMD’s Surprising China Breakthrough
Here’s the thing – this is actually a pretty big deal. While everyone’s been focused on NVIDIA‘s China struggles, AMD quietly secured the licenses it needs to compete in that massive market. Lisa Su basically said they’re “appreciative of the administration supporting some licenses,” which sounds like corporate speak for “we’re relieved we got this through.”
But the real story is in what they’re NOT saying. AMD isn’t counting any MI308 money in their Q4 numbers, which tells you everything. They’ve got the green light, but they’re not sure when – or even if – the revenue will actually materialize. That’s the tricky part about China’s AI market right now.
NVIDIA’s China Problem Gets Worse
Meanwhile, NVIDIA must be watching this unfold with growing frustration. They’ve been trying to get their H20 chips approved for months, and now their main competitor just waltzed in with licenses? Ouch. And it’s not just about export controls – Chinese authorities are apparently getting hostile toward NVIDIA’s entire tech stack.
So what’s really going on here? Is the US government playing favorites? Or does AMD’s MI308 just happen to fall perfectly within the performance thresholds that regulators are comfortable with? Either way, NVIDIA’s China business – which was once a massive revenue driver – is looking increasingly uncertain.
The Domestic AI Push Complicates Everything
Here’s the catch that both companies are facing: Beijing wants domestic solutions. They’re pushing hard for homegrown AI chips from companies like Huawei and others. So even if AMD gets to sell its MI308 chips, they’re still essentially backup players in China’s grand plan.
Think about it – China would rather use their own chips if they can get the performance close enough. Both AMD and NVIDIA are basically selling to customers who’d prefer not to buy from them at all. That creates a weird dynamic where even with licenses, the long-term opportunity might be limited.
What This Means for the AI Chip War
The immediate impact? AMD just gained what could be a temporary but significant advantage. They can now offer something that NVIDIA currently can’t to Chinese AI companies desperate for high-performance chips. But how long will this last?
Looking at the earnings call transcript, it’s clear AMD is being cautious. They’re not counting their chickens before they hatch. But in the high-stakes AI chip race, sometimes having the option to compete is half the battle. For now at least, AMD has that option in China while NVIDIA watches from the sidelines.
