Microsoft is urging the US government to rethink a proposed ban on Chinese-made optical transceivers, essential parts that help power AI data centers.
The worry? Cutting off these imports could make it harder and slower for the US to build out its AI capabilities, just as global competition heats up.
Chinese firms dominate optical transceiver supply
Chinese companies like Eoptolink and Zhongji Innolight control most of the world's supply, while American firms can't keep up with demand.
Microsoft, busy building dozens of new data centers, says the ban could seriously delay its expansion plans.
Meanwhile, industry groups are asking regulators not to blacklist these parts, even as a bipartisan group of US lawmakers introduced legislation to bar the federal government from equipping sensitive government systems with Chinese-made optical transceivers.