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Cloud Giants Back GAIN AI Act to Curb AI Chip Exports to China

The measure could be added to the annual defense bill.

Overview

  • Microsoft publicly endorsed the GAIN AI Act, and Amazon's cloud unit told Senate staff it supports the proposal, creating a rare split with chief supplier Nvidia.
  • The bill would require chipmakers to prioritize U.S. orders for advanced AI processors before foreign shipments and includes a trusted entities exemption that could streamline transfers for selected firms.
  • Lawmakers are considering attaching the measure to the National Defense Authorization Act, with backing from Democrats including Chuck Schumer and remaining hurdles with Republican leaders.
  • Nvidia is lobbying against the proposal, arguing it would distort semiconductor markets, and a report says the company has spent about $3.5 million this year on the effort.
  • Anthropic supports the legislation, while Meta, Google and President Donald Trump have not taken positions, and some White House officials question its necessity given existing Commerce Department export controls.