Shares of Advanced Micro Devices (NASDAQ:AMD) dropped around 2% in pre-market today following a report from Bloomberg News that the U.S. government has obstructed the company's plans to market an artificial intelligence chip in China. According to sources familiar with the situation, AMD had sought approval from the Commerce Department to distribute the processor to Chinese customers.

This chip, reportedly less advanced than those available in markets outside the U.S., was designed to comply with U.S. export regulations. However, U.S. authorities deemed the chip excessively advanced, instructing the company to secure a license from the Commerce Department's Bureau of Industry and Security for its sale in China.