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AMD mulls making AI chip for China

AMD has an opportunity to build AI solutions for customers in China and is working in that direction, company president and CEO Lisa Su said in a company earnings call on Tuesday.

Advanced Micro Devices (AMD) has an opportunity to build AI solutions for customers in China and is working in that direction, according to CEO Lisa Su.

The California-based manufacturer on Tuesday forecasted a strong finish to the year, while also predicting sales for its data center business in 2023, including MI300 chips, to top the $6.04 billion in sales generated last year. The MI300 falls into a category of chips that companies like OpenAI use to develop products such as ChatGPT.

"China is a very important market for us, certainly across our portfolio, as we think about certainly the accelerator market," Su said in a Tuesday earnings call. 

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"Our plan is to of course be fully compliant with U.S. Export controls, but we do believe there's an opportunity to develop product for our customer set in China that is looking for AI solutions, and we'll continue to work in that direction," she added.

AMD reported $5.4 billion in second-quarter revenue, representing a gross margin of 46%, an operating loss of $20 million, net income of $27 million and diluted earnings per share of $0.02.

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"AMD won't be able to make any AI accelerators or sell them to China, which means they can create and sell them less powerful products," Edward Moya, a senior market analyst at Oanda, told FOX Business.

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"Restrictions with China have weighed on both AMD and Nvidia share prices, but this AI trade is still at an early stage," he added. "Wall Street won't be deterred with the current Chinese restrictions."

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In June, AMD introduced its new AI "superchip" at the company's Data Center and AI Technology Premiere event in San Francisco.

Analysts predicted then the new technology will challenge rival Nvidia in the fast-growing artificial intelligence market. To date, Nvidia controls the AI computing market with 80% to 95% of the market share, according to analysts.

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