In a significant development that highlights the intensifying global artificial intelligence race, Amazon.com has joined Microsoft in supporting controversial US legislation that could severely restrict Nvidia's ability to export advanced chips to China. This creates a rare split between the dominant chip designer and two of its largest customers.
Tech Giants Take Opposite Sides in Chip Export Battle
The moves by Microsoft and Amazon to work against Nvidia, a company they are deeply intertwined with, underscore the fierce competition in the artificial intelligence sector. All three companies are actively jockeying for favorable policy positions to maintain competitive advantages in the rapidly evolving AI landscape.
The legislation in question, known as the Gain AI Act, would require semiconductor companies to satisfy US demand before exporting products to China and other countries subject to arms embargoes. This represents one of the first major efforts by Congress to directly address chip exports, which have become vital for the data centers that train sophisticated AI models.
While Microsoft has publicly endorsed the legislation, Amazon's cloud unit officials have privately expressed their support to Senate staffers, according to congressional aides and people familiar with the discussions.
What the Gain AI Act Means for Tech Companies
The proposed policy would provide significant benefits to major tech firms including Microsoft and Amazon by granting them preferential access to chips at their data centers worldwide. This advantage could prove crucial in the ongoing AI infrastructure race.
Support from these technology behemoths could substantially boost the act's prospects despite opposition from some White House officials, Nvidia, and other semiconductor companies. The legislation has already won backing from key Democrats, including Senate Minority Leader Chuck Schumer of New York.
Anthropic, a leading AI model developer that utilizes chips from Nvidia, Amazon, and Google, has also thrown its support behind the policy. The company generally favors export restrictions, according to sources familiar with the matter.
Congress is currently considering whether to include the Gain AI Act as an amendment to the National Defense Authorization Act, which typically reaches the president's desk by year-end.
Nvidia's Washington Influence Under Scrutiny
Nvidia, which controls approximately 80% of the market for AI processors, is fighting to maintain access to the lucrative Chinese market despite growing security concerns. The Gain AI Act represents a significant test of Nvidia's political influence in Washington.
The company has dramatically increased its lobbying efforts this year, spending nearly $3.5 million in the first three quarters alone, compared to just $640,000 throughout all of 2024, according to data from OpenSecrets.
Nvidia CEO Jensen Huang maintains regular communication with President Trump regarding AI policy, highlighting the company's efforts to shape the regulatory landscape. However, the current legislation has created unusual tensions between the chipmaker and its most important customers.
The proposed act includes an exemption that has particularly appealed to Microsoft and Amazon. This provision would allow tech companies and other trusted entities to bypass the need for government-approved export licenses when sending chips to regions like the Middle East. Both companies have experienced delays in obtaining such licenses previously.
Nvidia and other semiconductor firms argue that the legislation represents unnecessary government intervention in the semiconductor market that could pave the way for additional export restrictions. Meanwhile, tech executives have indicated that power availability, rather than chip supply, represents the primary bottleneck for AI industry growth in the United States.
The political battle over chip exports continues to intensify, with Senator Jim Banks of Indiana, the act's sponsor, joining Senator Elizabeth Warren of Massachusetts in criticizing Nvidia's exports to China. As the December deadline for the National Defense Authorization Act approaches, the outcome of this corporate policy clash could have far-reaching implications for the global AI industry.
