Hello tech enthusiasts! Today, we’ve got some intriguing news about AMD and its latest challenges in the world of AI chip exports.

According to AMD, the recent license control requirements imposed by the U.S. government for exporting AI chips to specific countries could have a significant impact on its bottom line.

The company is potentially facing an $800 million charge if it doesn’t secure the necessary licenses for its MI308 GPUs.

A filing revealed that AMD is already preparing to apply for these licenses, though success is not guaranteed.

In light of these new regulations, AMD’s stock took a hit, dropping around 7% during pre-market trading.

This situation is not unique to AMD; its main competitor, Nvidia, has also indicated that it may incur substantial charges due to these export controls.

Government officials have been advocating for tighter export regulations, arguing that providing AI chips to Chinese firms could threaten U.S. supremacy in AI and jeopardize national security.

A Commerce Department representative mentioned that these controls align with the President’s directive to protect national and economic security.