Microsoft, Amazon support legislation limiting NVIDIA's chip exports to China
What's the story
Amazon's cloud unit officials have privately expressed support, and Microsoft has publicly supported a proposed legislation that would further limit chipmaker NVIDIA's ability to export chips to China. This move is part of the Guaranteeing Access and Innovation for National Artificial Intelligence (GAIN) Act. AI start-up Anthropic is also supporting this legislation, according to The Wall Street Journal.
Legislation details
GAIN AI Act and its implications
The GAIN AI Act, which was introduced as part of the National Defense Authorization Act, requires that AI chipmakers prioritize domestic orders for advanced processors before exporting them to foreign customers. Microsoft has publicly supported this legislation while Amazon's cloud unit officials have also privately expressed their support to Senate staffers. However, Meta Platforms and Alphabet's Google have not yet taken a position on the Act.
Export restrictions
Concerns raised by NVIDIA and geopolitical considerations
NVIDIA, the world's leading chipmaker, has previously voiced concerns that the GAIN AI Act could limit global competition for advanced chips. This would ultimately restrict computing power available to other countries. The proposed legislation is seen as part of Washington's strategy to put American interests first amid fears that China could use high-end AI capabilities for military enhancement.