• AMD confirms receipt of U.S. export licenses to sell restricted AI chips in China, subject to a 15% fee on sales.
  • The Commerce Department began issuing licenses on Friday, enabling shipments of AMD's MI308 and Nvidia's H20 chips under new conditions.
  • The arrangement could unlock over $25 billion in combined China market potential for both companies, though margins will be pressured by the fee.

AMD Navigates New Export Framework

AMD has secured U.S. government approval to resume shipments of its China-compliant AI accelerators, joining Nvidia in a newly structured licensing regime that imposes a 15% fee on related sales. The Commerce Department started granting these licenses on Friday, according to people familiar with the matter, with AMD’s MI308 chip identified as one of the eligible products under the arrangement.

The MI308 is a performance-constrained variant designed to meet tightened U.S. export controls, mirroring Nvidia’s approach with its H20 chip. While Nvidia publicly acknowledged the framework, AMD has not yet commented on the specifics, though multiple reports confirm its inclusion. The fee—unprecedented in U.S. export control practice—effectively acts as a revenue-sharing mechanism, allowing both companies to tap into China’s vast AI market while adhering to national security restrictions.

Market and Policy Implications

China represents a critical market for AI chip sales, with combined revenue for AMD and Nvidia projected to exceed $25 billion. The licensing shift provides near-term clarity for investors, though the 15% fee will dent margins. "This is a pragmatic compromise," said one industry analyst, speaking on condition of anonymity. "It lets U.S. firms retain a foothold in China while giving policymakers a way to monetize and monitor exports."

The policy follows months of negotiations amid escalating U.S.-China tech tensions. Critics argue that even downgraded chips could bolster China’s AI capabilities, while proponents see the fee as a way to balance economic and security interests. For now, the licenses allow AMD and Nvidia to fulfill pent-up demand from Chinese cloud providers and AI developers, though long-term durability remains uncertain.

What’s Next

AMD’s ability to ship the MI308 could provide a modest boost to its data center revenue, though the fee structure will require careful financial planning. Meanwhile, Chinese buyers may accelerate efforts to develop domestic alternatives, potentially reshaping the competitive landscape over time. Observers are watching for further details on how fee proceeds will be allocated and whether the framework expands to other restricted technologies.