After Microsoft, Amazon backs proposed legislation to limit Nvidia's AI chip exports to China: Report

After Microsoft, Amazon is backing legislation that would curb chipmaker Nvidia's ability to export chips to China, the Wall Street Journal reported on Thursday, citing people familiar with the matter.

The legislation, known as the Guaranteeing Access and Innovation for National Artificial Intelligence (GAIN) AI Act, is also supported by AI startup Anthropic, according to the report.

Incorporated into the National Defence Authorisation Act, the GAIN Act requires AI chip manufacturers to prioritise fulfilling domestic orders for advanced processors before exporting to foreign buyers.

Microsoft publicly backed the legislation, whereas Amazon's cloud division has privately informed Senate staffers of their support for it, the report said.

Meanwhile, Meta Platforms and Alphabet's Google have not taken a position on the Act, and neither has US President Donald Trump, the report added.

Livemint could not immediately verify the report.

Nvidia, the world's leading chip manufacturer, on Friday, warned that the GAIN AI Act could limit international competition for advanced chips, potentially reducing the computing capabilities available to other nations.

"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 in any industry that uses mainstream computing chips," an Nvidia spokesperson told Reuters earlier.

If it becomes law, the bill will introduce new trade restrictions requiring exporters to get licenses and approval for shipments of silicon that exceed specific performance limits.

What does the legislation say?

The report quoted the legislation as saying, "It should be the policy of the United States and the Department of Commerce to deny licenses for the export of the most powerful AI chips, including such chips with total processing power of 4,800 or above and to restrict the export of advanced artificial intelligence chips to foreign entities so long as United States entities are waiting and unable to acquire those same chips."

The rules resemble certain aspects of the previous AI diffusion regulation proposed by US President Joe Biden, which assigned specific amounts of computing power to allies and other nations.

The AI Diffusion Rule and AI GAIN Act are efforts by Washington to focus on American interests, allowing domestic companies access to advanced chips while restricting China's access to high-end technology, due to concerns that China might use AI to enhance its military capabilities.