Amazon and Microsoft Allegedly Support Trump’s Plan to Block Nvidia in China
Mumbai, Nov 14 : Two of Nvidia’s largest hyperscaler customers, Amazon and Microsoft, have reportedly backed the Trump administration’s proposed GAIN AI Act, a move that could restrict Nvidia’s chip exports to China and favor these tech giants in the AI race.
According to the Wall Street Journal, Microsoft has publicly endorsed the act, while Amazon has communicated its support privately to Senate staffers. If passed, the legislation would require companies seeking licenses to export advanced AI chips to China and other sensitive regions to first ensure that American companies and startups receive priority access, giving Amazon and Microsoft an edge in the competitive AI market.
Nvidia and AMD have already been largely excluded from China’s AI chip market due to U.S. concerns about maintaining leadership in high performance computing. Nvidia’s stock has risen 39% year to date, compared with AMD’s 105% increase, reflecting the companies’ central role in the AI boom since late 2022.
Hyperscalers Team Up Against a Partner
The WSJ cited congressional aides and industry sources, noting that the support from Amazon and Microsoft reflects their interest in shaping policies that secure access to critical AI hardware. Analysts say the relationship between hyperscalers and Nvidia traditionally focused on pricing and supply has now become more complex due to government intervention.
Other major tech companies, including Alphabet (GOOG) and Meta (META), as well as former President Donald Trump, have yet to publicly take a stance on the legislation. Nvidia has voiced strong opposition, with a spokesperson telling Reuters:
“We never deprive American customers in order to serve the rest of the world. The proposed bill would restrict competition worldwide in any industry that uses mainstream computing chips.”
A Test for Nvidia CEO Jensen Huang
Congress is considering including the GAIN AI Act as an amendment to the National Defense Authorization Act, which requires presidential approval, typically by year end. The legislation has received support from Senate Democrats including Chuck Schumer and Elizabeth Warren, but still needs approval from key Republican leaders.
The act also poses a strategic challenge for Nvidia CEO Jensen Huang, who has consistently advocated for fair access for U.S. companies in the Chinese market. Earlier this year, Huang engaged with the Trump administration on China-specific H20 AI chip exports, highlighting the high-stakes political and business dynamics at play.
