AMD is preparing to launch a new AI chip designed specifically for the Chinese market, aligning with U.S. export regulations. The upcoming Radeon AI PRO R9700 is engineered for local AI inference and other advanced workloads, and is scalable for multi-GPU configurations. According to DigiTimes, the chip is slated for release by the third quarter of 2025.
Adapting to Export Controls
Following in Nvidia's footsteps, AMD is developing hardware that complies with Washington's export restrictions on advanced AI chips. Nvidia, for its part, is moving forward with the Nvidia B20, which is based on the Blackwell architecture but features reduced compute and memory capabilities to meet regulatory requirements.
Financial Impact and Market Demand
Both AMD and Nvidia have faced significant financial setbacks due to these restrictions. Nvidia CEO Jensen Huang revealed that the company incurred a $5.5 billion loss after being unable to sell its H20 chip to Chinese customers. Similarly, AMD reported an $800 million loss because its MI308 chip exceeded the allowed performance thresholds.
Despite these challenges, China remains a crucial market for AI hardware. Even with less powerful chips, demand persists among Chinese institutions. For example, sales of Nvidia’s H20, a scaled-down version of its HGX H20 AI GPU, have increased by 50% each quarter. The upcoming Nvidia B20 and Radeon AI PRO R9700 are expected to attract similar interest, as many AI models are optimized for these platforms and the software ecosystem remains robust.
Competitive Landscape and Local Innovation
While Chinese companies continue to advance their own AI chip development, Nvidia and AMD GPUs still offer superior software support and compatibility with existing infrastructure. In a recent interview, Jensen Huang commented, “AI researchers are still doing AI research in China. They have a lot of mobile technology they would use if they didn’t have Nvidia. If they don’t have enough Nvidia, they will use their own! They’ll use the second best.”
Huang also noted that export controls have spurred local innovation: “The local companies are very, very talented and very determined, and the export controls gave them the spirit, the energy, and the government support to accelerate their development. And so, I think, all in all, the export control was a failure — the facts would suggest it.”
Looking Ahead
As the global AI chip market continues to evolve under regulatory pressures, AMD’s Radeon AI PRO R9700 and Nvidia’s B20 represent the next wave of export-compliant solutions for China. Their arrival is set to shape the competitive landscape and drive further innovation in both hardware and software for AI applications.
