06:55 AM EST, 03/05/2024 (MT Newswires) -- Advanced Micro Devices ( AMD ) has hit a US government roadblock in trying to sell a watered-down version of its artificial intelligence chips to China, Bloomberg reported late Monday, citing people familiar with the matter.

The company had designed an AI-capable chip with lower performance than its other products to meet US export rules, the report said.

But US officials told the company the chip was still too powerful and that it needed a special license from the Department of Bureau of Industry and Security to sell it to China, the report added.

Neither Advanced Micro nor the US Department of Commerce immediately replied to MT Newswires requests for comment.

The company's shares were down nearly 2% in recent Tuesday premarket activity.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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