Both Intel and AMD have warned Chinese customers of delays on server CPU shipments, report says, as AI demand begins to eat into the processor market

SAN FRANCISCO, CA - JUNE 26: In this handout photo provided by Intel, Tom Kilroy, vice president of Intel?s Digital Enterprise Group, displays Intel's new Dual-Core Xeon Processor 5100 on June 26, 2006 at an event in San Francisco. Available for high-volume servers, workstation and communications markets, the 64-bit processor is based on the Intel Core Microarchitecture for increased performance with reduced energy consumption. (Photo by Court Mast/Intel via Getty Images).

Both Intel and AMD have notified Chinese customers of supply shortages affecting their respective server CPUs, according to a Reuters report, with up to a six-month lead time on Intel chips.

While much noise has been made regarding AI GPUs and their effect on the memory market in recent months, server CPUs are also in high demand as the AI boom continues to bear fruit.