Amazon joins Microsoft to support act that gives US buyers priority on Nvidia's AI chips

Tech giants Amazon and Microsoft have reportedly aligned in support of new legislation designed to restrict chipmaker Nvidia’s ability to export advanced AI chips, prioritising US customers amid rising concerns over China’s military AI capabilities.

The legislation, known as the Guaranteeing Access and Innovation for National Artificial Intelligence (GAIN) Act, is also backed by AI startup Anthropic. It has been introduced as part of the National Defense Authorization Act (NDAA).According to a report by the Wall Street Journal (via news agency Reuters), the GAIN AI Act says that US chipmakers must prioritise domestic orders for advanced processors before fulfilling requests from foreign customers.

While Microsoft has publicly endorsed the legislation, officials within Amazon's cloud unit have reportedly informed Senate staffers of their private support. The report mentions that the move reflects a broader attempt by Washington to safeguard American access to critical, high-end AI components, driven by fears that China could utilise these capabilities to bolster its military strength.

Key players and government stance

The decision by Amazon and Microsoft contrasts with the positions of other major tech players.

Meta Platforms and Alphabet's Google have not yet taken a public stance on the Act.The White House, however, appears to be cautious regarding the Act’s necessity. White House officials, including AI czar David Sacks, reportedly told Senator Jim Banks – a sponsor of the GAIN Act – that the policy's potential impact may be limited since the Commerce Department already has regulations governing chip exports.Nvidia, which dominates the global market for advanced AI chips, has previously stated that the GAIN AI Act risks restricting global competition for advanced chips and limiting computing power available to other nations.