Amazon, Microsoft back bill curbing Nvidia chip exports to China

Amazon and Microsoft are backing the GAIN AI Act, legislation folded into the National Defense Authorization Act that would require AI chipmakers such as Nvidia to prioritize U.S. orders for advanced processors before supplying foreign customers, tightening limits on exports to China.

According to preliminary data, Amazon’s cloud unit also conveyed support to Senate staff. Microsoft has publicly endorsed the measure. AI startup Anthropic also backs the bill. Meta Platforms and Alphabet’s Google have not taken a position.

The proposal would apply to manufacturers of high-end processors used to train and run large AI models. It aims to formalize a domestic-first queue at a time when GPUs and other AI chips are in short supply across cloud providers, research labs and government agencies.

Interest in Congress reflects concerns that access to cutting-edge AI hardware could strengthen China’s military and surveillance capabilities. Lawmakers are considering whether to embed a domestic-first supply framework within the annual defense policy bill now before Congress.

Some administration officials have told lawmakers the practical effect could be limited because the Commerce Department already regulates chip exports to China and other destinations. Sponsors and supporters view a statutory requirement as clearer guidance for suppliers and customers when demand exceeds production capacity.

Nvidia, the leading supplier of AI accelerators, argued the plan would constrain global competition and reduce computing capacity available to customers outside the United States. The company has previously warned that tighter rules could disrupt its international business, including in markets served by export-compliant products.

As we reported earlier, Amazon outlined plans to eliminate about 14,000 corporate roles to simplify management and shift spending to artificial intelligence initiatives.