Advanced Micro Devices (AMD, Financials) said it could take a charge of up to $800 million after the U.S. government expanded restrictions on artificial intelligence chip exports to China and other countries. The company made the disclosure in a filing with the Securities and Exchange Commission.

The updated rules, issued April 15, now require export licenses for AMD's MI308 GPUs to be sold in China, Hong Kong, Macau, and countries under U.S. arms embargoes. AMD said it plans to seek licenses but added there's no guarantee those requests will be approved.

The new restrictions are part of a broader push by Washington to limit Beijing's access to advanced AI chips. U.S. officials say the goal is to protect national and economic security, according to a statement from the Department of Commerce cited by Reuters.

Nvidia (NVDA, Financials) is also being affected. The company expects to write off $5.5 billion related to its H20 chips, which are now also subject to the tightened rules. Both companies had developed chips tailored to stay within previous export limits, but the latest update makes those designs ineligible for export without a license.

Despite the restrictions, reports suggest some chips are still finding their way into China through third parties based in countries such as Malaysia, Vietnam, and Taiwan. Governments in Singapore and Malaysia have pledged to crack down, though it remains unclear how effective those efforts will be.

AMD's warning comes as U.S. regulators continue to refine their approach to AI-related exports, with industry players caught in the middle. For some, it's a major financial hit. For others, including gamers, there's speculation that excess chip inventory could trickle down into consumer markets.