According to Wccftech, AMD has received U.S. 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 Blackwell chip approvals. The MI308 chips are positioned as competitive alternatives to Nvidia’s H20 accelerators but comply with U.S. export controls. Interestingly, AMD isn’t including any MI308 revenue in its Q4 guidance despite the license approval. This development gives AMD a “slim” edge in China’s AI markets as Nvidia faces both U.S. export hurdles and Chinese government hostility toward its technology stack.
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The China Chess Game
Here’s the thing – this is a pretty significant strategic win for AMD. While Nvidia‘s been completely locked out of selling its latest AI chips in China, AMD just got the green light for what’s essentially their version of Nvidia’s H20. And timing couldn’t be more crucial. Chinese AI developers are desperate for high-performance chips that actually comply with export controls, and AMD’s MI308 appears to fit that bill perfectly.
But there’s a catch. AMD’s decision to exclude MI308 revenue from Q4 guidance tells you everything about how uncertain this market really is. They’re basically saying “Yeah, we got the licenses, but we’re not counting on the money yet.” That’s smart hedging in a market where Beijing could change the rules overnight.
Why Nvidia’s Stuck
Meanwhile, Nvidia’s facing a perfect storm of problems. They can’t get export licenses for their Blackwell chips, their H20 approvals are delayed, and Chinese authorities are actively hostile toward their tech stack. It’s like trying to sell ice to eskimos while the government’s telling everyone to build their own freezers.
Think about it – Chinese companies have been hoarding Nvidia chips for years, but that supply’s drying up fast. Now they need alternatives, and AMD’s MI308 suddenly looks pretty attractive. The question is whether AMD can actually capitalize on this opening before Chinese domestic solutions mature enough to compete.
The Revenue Reality
Let’s be real though – this isn’t going to move the needle dramatically for AMD’s bottom line anytime soon. As the earnings call transcript shows, they’re being extremely cautious about counting this revenue. The Chinese government’s push for domestic solutions means both AMD and Nvidia are essentially temporary solutions until homegrown chips catch up.
Basically, AMD’s playing the long game here. They’re getting a foot in the door while Nvidia’s locked outside, but they’re not betting the farm on it. Smart move in a market that could disappear overnight if China decides to fully embrace local alternatives.
What Comes Next
So where does this leave the AI chip race in China? AMD has a narrow window to establish relationships and prove their technology stack works for Chinese customers. If they can build momentum while Nvidia’s sidelined, they might actually carve out a sustainable position. But they’re racing against China’s own chip development timeline.
The real test will be whether Chinese companies actually adopt AMD’s architecture at scale. Getting licenses is one thing – convincing customers to rebuild their AI infrastructure around your chips is another. Still, for now, AMD’s strategic positioning in China just got a whole lot more interesting while Nvidia watches from the sidelines.
