Amazon said to back bill limiting Nvidia chip sales to China

Amazon is supporting US legislation that would further limit Nvidia’s ability to export advanced chips to China, according to a report citing unnamed sources.

The GAIN AI Act, which also has backing from Microsoft and AI startup Anthropic, was introduced under the National Defense Authorization Act.

The proposed law would require AI chipmakers to prioritize US orders for advanced processors before selling to foreign buyers.

Microsoft has publicly endorsed the bill, while Amazon’s cloud division has reportedly conveyed private support to Senate staff.

Meta and Google have not taken a position on the legislation.

Nvidia has said the GAIN AI Act could reduce global competition for advanced chips and limit computing power in countries outside the US.

The legislation comes amid efforts in Washington to limit China’s access to high-end AI technology over security concerns.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Amazon and Microsoft support may stem from worries about Chinese GPU competition

The GAIN AI Act gives US buyers a “right of first refusal” with 15 days to decide on chip orders before overseas sales 1. That setup could give Amazon and Microsoft priority access to Nvidia’s newest GPUs when supply is tight.
US private AI investment hit $470 billion in 2013–2024, far above the EU’s $50 billion 2. AI data center power needs could hit 200 gigawatts by 2030 3.
The Senate passed the National Defense Authorization Act (NDAA) with the Banks–Warren amendment, which mirrors the GAIN AI Act, by a 77–20 vote 1. House and Senate still must reconcile their bills, which could change the 15-day window or the performance thresholds that trigger US export licensing.

Non-US clouds could stand out with US-hosted AI for customers facing GPU shortages

The EU holds 4.8% of high-end AI compute versus 74% in the US 2. If the act becomes law, firms may face tighter GPU access, which would drive demand for US-based options.
Foreign cloud providers could set up a US footprint to get access to GPUs. Colocation operators (third-party data center companies that rent space, power, and cooling) could sell that capacity to AI labs or enterprises that cannot source chips directly.
In 2024 the EU added 1.6 GW of data center capacity versus 5.8 GW in the US 2. That gap leaves room for US-hosted services for European or Asian customers needing the latest accelerators.