Tech Giants Split as White House Opposes AI Chip Export Restrictions on Nvidia

Scoop: White House moves to block bill restricting AI chip exports

Why it matters: Nvidia would win big if the GAIN AI Act doesn't make it into the final version of the National Defense Authorization Act. * AI czar David Sacks had been spearheading an effort to drop the bill, and his effort now has the backing of the White House Office of Legislative Affairs, making the bill's chances of inclusion in the must-pass defense legislation slim to none. * Negotiations for the annual defense policy bill are in flux as lawmakers try to finalize language. Driving the news: Administration officials have been making calls to key lawmakers, including House Majority Leader Steve Scalise, telling them to oppose the bill, sources told Axios. * The bill would require chip companies to fulfill purchases of U.S. customers before exporting to "countries of concern," including China. * It also includes certain export license exemptions for "trusted" entities. * Changes to the bill were received well by companies like Amazon and Microsoft. * Sen. Jim Banks (R-Ind.), the bill's sponsor, and the White House did not respond to requests for comment. The big picture: Nvidia CEO Jensen Huang is adamant about tapping into the Chinese market and has been successful in convincing key administration officials that it's beneficial for a U.S. company to serve it. * Huang's pull with the administration briefly came into question after his request that President Trump bring up AI chip sales to Chinese leader Xi Jinping sparked administration infighting and was ultimately shot down. What's next: House and Senate negotiators are scrambling to finalize the annual defense policy bill ahead of Thanksgiving, with both chambers aiming to take up the legislation in December.

Amazon, Microsoft back effort to curb Nvidia's exports to China: Report - The Economic Times

Amazon has joined Microsoft and Anthropic in supporting the GAIN AI Act, which would require AI chipmakers like Nvidia to prioritise US orders before exporting to China. The bill faces mixed reactions, with some officials saying export controls already exist and Nvidia warning it could harm global competition.Amazon is joining Microsoft in backing legislation to further restrict 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 GAIN AI Act, is also backed by AI startup Anthropic, the report said. Short for Guaranteeing Access and Innovation for National Artificial Intelligence (GAIN), the Act was introduced as part of the National Defense Authorization Act and stipulates that AI chipmakers prioritize domestic orders for advanced processors before supplying them to foreign customers. Microsoft publicly came out in favor of the legislation, while officials at Amazon's cloud unit have privately told Senate staffers that they also support it, the report said. Meta Platforms and Alphabet's Google have not taken a position on the Act, and neither has US President Donald Trump, the report added. White House officials, including AI czar David Sacks, told GAIN Act sponsor Senator Jim Banks that the policy's impact is limited as the Commerce Department already regulates chip exports, the report said. Reuters could not immediately verify the report. Amazon declined to comment, while Microsoft, Anthropic and the White House did not immediately respond to Reuters' requests for comment. Nvidia, the world's dominant chipmaker, has previously said the GAIN AI Act stands to restrict global competition for advanced chips, limiting computing power available to other countries. The touted legislation reflects Washington's attempt to prioritise American needs amid fears that China would leverage access to high-end AI capabilities to supercharge its military.

Nvidia Faces Growing Pressure As Amazon, Microsoft Support Curbs On AI Chip Exports To China: Report - Broadcom (NASDAQ:AVGO), Amazon.com (NASDAQ:AMZN)

Amazon.com, Inc. (NASDAQ:AMZN) and Microsoft Corporation (NASDAQ:MSFT) are reportedly lining up behind new U.S. legislation that could further curb Nvidia Corporation's (NASDAQ:NVDA) AI chip exports to China. Amazon, Microsoft Break With Nvidia On New Export Controls Amazon and Microsoft are backing the Gain AI Act, reported the Wall Street Journal. It is a congressional proposal that would tighten restrictions on exporting advanced AI chips to China and other countries under U.S. arms embargoes. Microsoft has publicly endorsed the Gain AI Act, while Amazon's cloud division has privately informed Senate staffers, the report noted, citing congressional aides and people familiar with the matter. The move marks a rare public split with Nvidia, the dominant supplier of AI processors powering both companies' cloud services. Microsoft, Amazon and Nvidia did not immediately respond to Benzinga's request for comments. See Also: Nvidia CEO Jensen Huang Hails TSMC Wafer Backing Amid 'Very Strong' Demand For Blackwell Chips After Trump Bars Sales To 'Other People' Meta, Google And Trump Yet To Take A Stance As per the report, Meta Platforms, Inc. (NASDAQ:META), Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google and President Donald Trump have not yet taken a stance on the issue. Although Trump earlier this month stated that Nvidia's advanced Blackwell AI chip will not be made available to "other people." Anthropic, which typically backs export controls and relies on chips from Nvidia, Amazon and Google, is also supporting the policy, the report said. The bill would require chipmakers to prioritize U.S. demand before sending products overseas. It would also grant trusted entities the ability to transfer chips to certain regions without waiting for government approval -- a process that has often slowed their global data center expansion. Nvidia Pushes Back As China Market Shrinks To 'Zero' Nvidia, however, is lobbying aggressively against the bill. The company argues it would unnecessarily interfere in the semiconductor market and invite additional restrictions. CEO Jensen Huang has warned repeatedly that the company's China business has deteriorated sharply. Huang said earlier this year that Nvidia's market share in China had fallen from about 95% to almost nothing. This happened due to tightening U.S. export rules and Beijing's move to ban foreign AI chips from state-funded data centers. He has also cautioned that China could overtake the U.S. in AI thanks to cheaper energy and fewer regulatory hurdles. Congress Weighs Act As Tech Giants Take Sides Lawmakers are considering attaching the Gain AI Act to the annual National Defense Authorization Act. The proposal has support from key Democrats, including Senate Minority Leader Chuck Schumer (D-N.Y.), but still needs approval from Senate Banking Chair Tim Scott (R-S.C.) and House Republican leadership. Meanwhile, tech stocks lost over $700 billion in market value Thursday afternoon as fading hopes for Fed rate cuts and concerns about AI-related energy shortages sparked a sharp risk-off move, with the Nasdaq 100 sliding 2.05% and major players like Nvidia, Tesla Inc. (NASDAQ:TSLA), Alphabet, Broadcom, Inc. (NASDAQ:AVGO), Amazon and Microsoft posting steep declines. Nvidia closed at $186.86 on Thursday, down 3.58%, and slipped another 0.50% to $185.92 in after-hours trading. The company ranks in the 98th percentile for Growth and 93rd for Quality in Benzinga's Edge Stock Rankings, underscoring its strong standing compared with industry peers. Read More: Tesla Investor Ross Gerber Says 'Super Sad' To See Federal EV Subsidies End: 'Credits Created...' Photo: Shutterstock/Saulo Ferreira Angelo Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. AMZNAmazon.com Inc$238.30-2.42%OverviewAVGOBroadcom Inc$340.00-4.28%GOOGAlphabet Inc$279.93-2.61%GOOGLAlphabet Inc$279.21-2.61%METAMeta Platforms Inc$608.75-0.04%MSFTMicrosoft Corp$504.33-1.33%NVDANVIDIA Corp$185.92-4.07%TSLATesla Inc$400.40-7.01%Market News and Data brought to you by Benzinga APIs

White House asks Congress to reject bill blocking Nvidia chip exports- Bloomberg By Investing.com

Investing.com-- The Donald Trump administration is asking Congress to reject a proposed measure that seeks to limit NVIDIA Corp's (NASDAQ:NVDA) ability to sell artificial intelligence chips to China and embargoed countries, Bloomberg reported on Thursday, citing people familiar with the matter. The measure in question is the bipartisan GAIN AI Act, which aims to create a system requiring chipmakers to give U.S. companies first rights to AI chips, before any sales to China and other embargoed countries are made. The GAIN Act is still in its early stages, with lawmakers also discussing whether to include the act in an annual defense bill. The White House's stance is a victory for Nvidia, which has been consistently lobbying to be allowed to sell more chips overseas. China until recently still represented a major market for Nvidia, although the firm signaled earlier this year that it would stop including the country in its sales forecasts. This also came amid increased Chinese scrutiny towards American-made chips, as Beijing pushed for full self-reliance in AI technology. The Bloomberg report comes just hours after Nvidia clocked stronger-than-expected third-quarter earnings and presented an upbeat outlook for the current quarter. CEO Jensen Huang also pushed back against fears of an AI-fueled bubble in tech valuations.

Amazon, Microsoft back efforts to block Nvidia sales to China- WSJ By Investing.com

Investing.com-- Amazon (NASDAQ:AMZN) is joining Microsoft (NASDAQ:MSFT) in backing legislation that aims to further limit Nvidia's (NASDAQ:NVDA) exports to China, the Wall Street Journal reported on Thursday, citing congressional aides and people familiar with the matter. Microsoft had publicly come out in favor of the Gain AI act- proposed legislation that aims to impose mandates on Nvidia and other tech exporters to prioritize U.S. demand over sending products to China and other embargoed markets. Officials at Amazon's cloud unit were seen telling Senate staffers they also supported the bill, the WSJ report showed. The Gain AI act will largely benefit U.S.-based tech firms by giving them first-mover access to Nvidia's AI chips. Alphabet (NASDAQ:GOOGL)-backed Anthropic is also supporting the policy, WSJ reported. U.S. lawmakers are considering adding the act as an amendment to the National Defense Authorization act, the WSJ report said, with the measure seeing bipartisan support. The legislation comes as Nvidia struggles to gain access to the lucrative Chinese market, after the Donald Trump administration imposed stricter restrictions on sales to China earlier this year. While Trump did dial back some of the restrictions, Nvidia will be largely blocked from selling its most advanced chips in China. Recent reports showed that Nvidia will also be blocked from even selling its scaled back, less-powerful AI chips to China. Nvidia is also facing increased resistance in China over its chip sales, as Beijing pushes for complete self-reliance in AI.

Amazon joins Microsoft in supporting a bill limiting exports of Nvidia chips to China

Amazon has officially aligned itself with Microsoft in supporting the Gain AI Act, a bill aimed at further restricting exports of semiconductors, particularly those from Nvidia, to China. According to sources cited by the Wall Street Journal, Amazon's cloud division has informed several senators that it supports the proposal, which Microsoft has already publicly endorsed. The bill would require manufacturers to meet domestic US demand first before exporting to countries subject to restrictions, in exchange for priority access to chips for large US technology companies. This support comes amid growing tensions between Washington and Beijing over critical technologies and strategic competition over artificial intelligence. Anthropic, a start-up backed by Amazon, also supports the bill. At this stage, neither Google (Alphabet) nor Meta have commented, and President Donald Trump has not spoken publicly about the measure. Nvidia, which is directly targeted by the bill, has defended its practices, assuring that its exports do not compromise the supply of American companies and that it complies with the restrictions in force. The group believes that criticism directed at Congress could weaken the Trump administration's AI Action Plan and undermine the United States' position in the global AI race. The Gain AI Act could reshuffle the deck in terms of access to critical computing resources by reinforcing national priority in a context of strong global demand.