Amazon & Microsoft Reportedly Back Push to Limit Nvidia’s China Chip Exports

Amazon has joined Microsoft in supporting new U.S. legislation that would further restrict Nvidia’s ability to export advanced AI chips to China, according to a new report by The Wall Street Journal.

The proposal, called the GAIN AI Act, is part of the National Defense Authorization Act. For those uninitiated, it’s short name for Guaranteeing Access and Innovation for National Artificial Intelligence. The bill would require AI chipmakers to prioritize U.S. orders for advanced processors before selling them to overseas customers. Apparently, the goal is to secure enough computing power for American companies and government agencies.

Microsoft has already spoken publicly in favor of the legislation. The report says Amazon Web Services has privately told Senate staff that it also backs the proposal. AI startup Anthropic is supporting it too.

Officials, including David Sacks, reportedly told the bill’s sponsor, Senator Jim Banks, that the policy may have limited impact. They argue that the Commerce Department already regulates exports of the most advanced chips under existing rules.

Nvidia has, however, pushed back against the legislation. The company says the bill could restrict global competition and reduce access to high-end computing outside the U.S. Nvidia further warns that such limits could slow AI development in other countries.

via: Reuters