AMD says U.S. told it to stop shipping top AI chip to China

Advanced Micro Devices Inc (AMD.O) on Wednesday said U.S. officials have told it to stop exporting its top artificial intelligence chip to China, according to a spokesman.

The company said new license requirements prevent shipment of its MI250 chips to China but it believes its MI100 chips are not affected by the new requirement. The company said it does not believe the new rules will have a material impact on its business.

AMD shares had been down 2% in after-hours trading after rival Nvidia said (NVDA.O) the new rules could cost it up to $400 million is sales.