AI War Escalates: Microsoft and Amazon Challenge Nvidia's China Dominance

A notable policy rift has appeared in the increasingly intense competition surrounding artificial intelligence development. Amazon and Microsoft have come out in favor of a bill that would sharply limit Nvidia’s ability to export its advanced chips to China. Their position effectively places two of Nvidia’s largest clients in opposition to the company, highlighting the broader struggle for access to high-performance AI hardware.

The proposed legislation—called the Guaranteeing Access and Innovation for National Artificial Intelligence (GAIN) Act—seeks to ensure that the United States maintains a reliable supply of cutting-edge AI processors. It represents one of Congress’s first efforts to regulate the movement of chips that power the data centers used for training AI systems. A key element of the bill would require manufacturers to meet U.S. demand for advanced chips before shipping them to China or other countries subject to arms-related restrictions. Another provision could allow certain “trusted entities,” including major cloud providers, to acquire chips internationally without undergoing the usual licensing process, potentially giving participating companies a competitive advantage. Microsoft has publicly endorsed the proposal, and Amazon Web Services officials have privately signaled support to Senate staff, according to individuals familiar with the discussions. Anthropic, which relies on chips from Nvidia, Amazon, and Google, is also backing the measure.

This alignment against Nvidia marks a significant moment in the ongoing policy fight among large technology companies. Nvidia, which holds more than four-fifths of the current AI-chip market, is pushing back forcefully. The company has increased its lobbying spending to roughly $3.5 million during the first three quarters of the year—far above the amount invested the previous year—arguing that the bill could disrupt global chip supply chains and invite even stricter export controls. Support from Amazon and Microsoft strengthens the bill’s momentum despite reservations within parts of the White House and concerns from some semiconductor firms. Meta and Google have not publicly weighed in, and President Trump has also withheld comment. Lawmakers are considering attaching the GAIN AI Act to the National Defense Authorization Act, which Congress typically approves before year’s end. The proposal has received support from prominent legislators, including Senate Minority Leader Chuck Schumer, but it still requires the backing of key Republicans in both chambers to proceed.