Amazon and Microsoft have publicly endorsed the GAIN AI Act, a proposed amendment to the National Defense Authorization Act that would require chipmakers to satisfy domestic demand before shipping advanced AI chips to China and other embargoed markets. The legislation sets a threshold of 4,800 total processing power units for the most powerful GPUs, and it introduces a 15‑day right‑of‑first‑refusal window for U.S. buyers, as well as a trusted‑entities exemption that would allow certain U.S. companies to export chips without a license.
The GAIN AI Act is aimed at protecting national security while ensuring that U.S. firms retain priority access to scarce high‑performance chips. Amazon’s support reflects its reliance on Nvidia GPUs for AI workloads in China, including AWS services and internal applications that drive its cloud and machine‑learning businesses. Amazon has also been developing its own AI processors, such as the Trainium line, to reduce dependence on external suppliers, a strategy that could be accelerated if the Act limits Nvidia’s exports.
Nvidia has publicly opposed the Act, arguing that it would distort global semiconductor markets and restrict competition. The company’s market share in China has already slipped after earlier U.S. export controls, and the new restrictions could further limit its ability to supply the country’s growing AI industry. The Act would also compel Nvidia to allocate a larger share of its production to U.S. customers, potentially tightening supply for Amazon and Microsoft and increasing their supply‑chain costs or prompting a shift to alternative suppliers.
The legislation is part of a broader U.S. effort to curb China’s AI ambitions, which include a push for domestic chip self‑reliance and the development of competing platforms such as Huawei’s Ascend series. By aligning with Amazon and Microsoft, the GAIN AI Act signals that U.S. tech giants are willing to use policy tools to secure their own access to critical hardware, a move that could reshape the competitive landscape for AI chips and encourage other firms to support similar restrictions.
Amazon’s cloud division has privately communicated its support to Senate staffers, while Microsoft’s head of U.S. policy, Jerry Petrella, has publicly praised the bill as a “necessary step to protect our national security and the integrity of our supply chain.” Nvidia CEO Jensen Huang has warned that the Act would “undermine the global semiconductor ecosystem and harm innovation in China.”
The convergence of corporate support and national‑security policy underscores the strategic importance of AI hardware in the U.S.–China technology rivalry. If enacted, the GAIN AI Act would tighten export controls, potentially alter supply chains for Amazon and Microsoft, and intensify the competition between U.S. and Chinese chipmakers.
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