Amazon and Microsoft may be positioning themselves against Nvidia’s China business. The Wall Street Journal reported Thursday, citing people familiar with the matter, that Amazon is joining Microsoft in backing legislation that would further restrict the chipmaker’s ability to export advanced chips to China.
The report said that the legislation, known as the GAIN AI Act, is also backed by AI startup Anthropic.
The GAIN AI Act, introduced in 2025, is a proposed U.S. law aimed at ensuring domestic access to advanced AI chips while restricting exports to “countries of concern.” The legislation would amend the Export Control Reform Act of 2018, requiring AI chipmakers to prioritize U.S. customers before selling or shipping high-performance processors abroad. Licenses for exports would depend on whether domestic demand is fully met, and only certain “trusted United States persons” could operate or move these chips internationally under strict security conditions.
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Nvidia, the world’s dominant chipmaker, has previously said the GAIN AI Act stands to restrict global competition for advanced chips, limiting computing power available to other countries.
Proponents argue the act will protect American innovation, support startups, universities, and cloud providers, and help maintain U.S. leadership in critical AI technologies. Critics, including major chipmakers like Nvidia, warn that the restrictions could reduce global competitiveness, hinder exports, and slow technological development. The GAIN AI Act represents a strategic attempt to balance national security, economic interests, and technological leadership, though its ultimate impact will depend on how broadly and strictly the rules are enforced.
The report said that Microsoft publicly came out in favor of the legislation, while officials at Amazon’s cloud unit have privately told Senate staffers that they also support it.
By prioritizing domestic access to advanced AI chips and restricting exports to countries of concern, the legislation seeks to safeguard U.S. technological leadership while limiting the global proliferation of cutting-edge AI hardware. Support from major players like Microsoft and Amazon, along with AI startups such as Anthropic, signals broad industry recognition of the strategic importance of ensuring that American firms, researchers, and institutions have reliable access to the most advanced computing resources.
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At the same time, the controversy underscores the challenges of balancing innovation, competitiveness, and security. Nvidia and other critics caution that the restrictions could limit the global availability of high-performance chips, potentially slowing international AI development and reducing the competitiveness of U.S. companies in foreign markets.
The GAIN AI Act thus sits at the nexus of economic policy and national defense, illustrating how legislation can influence both domestic industrial strategy and global technology flows.