Amazon and Microsoft Support GAIN AI Act to Restrict Nvidia Chip Exports to China and Safeguard U.S. Security

Amazon Joins Microsoft In Backing Legislation To Restrict Nvidia Chip Exports To China

Major U.S. tech companies are aligning with Washington to tighten control over the international flow of advanced AI chips, as Amazon joins Microsoft in supporting the GAIN AI Act, legislation designed to limit exports to China and other foreign markets until domestic demand is fully met.

The move highlights the intensifying competition for high-performance AI chips within the U.S. and reflects broader concerns about national security and technological leadership.

What The GAIN AI Act Requires

Formally titled the Guaranteeing Access and Innovation for National Artificial Intelligence (GAIN) Act of 2025, the legislation was introduced in the House of Representatives on 31 October 2025 and incorporated into the National Defence Authorization Act.

It mandates that AI chipmakers prioritise domestic orders for advanced processors before supplying foreign customers.

The bill specifically calls for denying export licences for the most powerful AI chips—defined as those with total processing power of 4,800 or above—whenever U.S. entities are still waiting to acquire them.

Tech Giants Rally Behind The Bill

Microsoft has publicly endorsed the legislation, while Amazon’s cloud division has privately informed Senate staffers of its support.

AI startup Anthropic has also thrown its weight behind the proposal.

Not all tech companies have taken a stance; Meta Platforms and Alphabet’s Google have remained neutral, and U.S. President Donald Trump has yet to comment.

National Security Concerns Drive Legislation

Proponents frame the GAIN AI Act as a tool to protect U.S. security and economic interests.

Senator Jim Banks (R-IN) stated the bill “ensures American-made technology is used to support U.S. security and economy before being transferred to foreign adversaries.”

Commerce Secretary Gina Raimondo added,

“As AI becomes more powerful, the risks to our national security become even more intense.”

She argued that restricting AI chip exports prevents potential adversaries from gaining a tactical military advantage while preserving U.S. innovation and global stability.

Global Competition And Military Applications

The legislation reflects broader worries over China and Russia’s rapid AI developments.

China’s People’s Liberation Army has emphasised “intelligentized warfare,” integrating AI into military strategy, while Russia is focusing on AI-driven command systems, hypersonic weapons, and electronic warfare.

U.S. export controls aim to counter these advances by limiting rivals’ access to critical AI technology, according to analysis from FutureWerx.

Nvidia Pushes Back Against Export Restrictions

Nvidia, which dominates roughly 80% of the AI chip market, has spent $3.5 million on lobbying efforts opposing the GAIN AI Act.

The company warned the bill could “restrict competition worldwide in any industry that uses mainstream computing chips.”

A spokesperson said,

“We never deprive American customers in order to serve the rest of the world. In trying to solve a problem that does not exist, the proposed bill would restrict competition worldwide.”

Nvidia also projected that strict export rules could cost the firm an additional $5.5 billion, despite its $500 billion plan to build AI servers in the U.S. over the next four years with partners like TSMC.

U.S. Export Controls And Historical Context

The push to restrict AI chip exports follows a series of trade measures in 2025.

In May, the U.S. halted sales of key semiconductor design software to China, citing Beijing’s control over rare earth exports.

These restrictions were temporarily lifted on 4 July 2025 for companies including Synopsys, Cadence, and Siemens, reflecting ongoing tensions over technology access.

Will The Bill Shape Global AI Competition

While the GAIN AI Act is framed as a national security measure, it also positions the U.S. to retain a technological edge in the global AI arms race.

Senate Minority Leader Chuck Schumer has endorsed the bill, calling it “crucial to strengthening American leadership in AI and averting future chip shortages.”

Meanwhile, Nvidia and other critics warn that imposing strict export limits could distort global semiconductor markets and reduce computing capacity available internationally.

The GAIN AI Act therefore sits at the intersection of commerce, security, and international competition, highlighting the increasingly strategic role of AI chips in both national policy and global power dynamics.