Amazon and Microsoft are backing new legislation in Washington that threatens to limit Nvidia’s AI chip sales to China. The move, reported November 13, marks a rare split between the chip giant and two of its largest customers.
The proposed Guaranteeing Access and Innovation for National Artificial Intelligence Act of 2025 (GAIN AI Act) would force chip makers to meet U.S. demand before exporting to nations like China, giving the cloud companies priority access to Nvidia’s powerful hardware.
This rift underscores the intense AI race, as major tech firms lobby for policies that give them an edge in the escalating U.S.-China tech war.
A Strategic Rift: Cloud Giants Challenge Nvidia’s China Access
In a rare public split, Amazon and Microsoft have aligned against their primary AI hardware supplier, Nvidia, over a critical piece of U.S. export legislation, reports The Wall Street Journal.
Both cloud giants, along with prominent AI developer Anthropic, are supporting a bill that would prioritize domestic access to advanced semiconductors.
Their backing creates a formidable coalition pushing for tighter controls on technology exports to China. For Nvidia, the legislation represents a direct threat to its already diminished presence in a once-lucrative market, forcing a difficult strategic recalculation.
Corporate maneuvering highlights a deepening tension within the tech industry. As one analyst noted, “Usually the tension between hyperscalers and Nvidia is about the product itself and pricing. Right now that tension is getting more complicated.”
The conflict is no longer just about pricing; it is a strategic battle over supply chain control and geopolitical alignment. Microsoft has been vocal in its support, with a policy executive stating “the policy looked ‘really positive’.”
Amazon’s cloud unit has privately conveyed similar support to Senate staffers, according to congressional aides, signaling a unified front from the two largest cloud providers.
Behind the scenes in Washington, Nvidia is fighting back with significant financial muscle. The company has dramatically ramped up its lobbying efforts to protect its interests.
According to the WSJ, it spent nearly $3.5 million in the first three quarters of 2025, a sharp increase from $640,000 in all of 2024, as it navigates the complex landscape of AI policy.
This investment in political influence underscores the high stakes involved, as the outcome of this legislative battle could reshape the competitive dynamics between the world’s most powerful technology companies.
The GAIN AI Act: Prioritizing Domestic Supply Chains
At the heart of the dispute is the Guaranteeing Access and Innovation for National Artificial Intelligence Act of 2025 (GAIN AI Act).
Introduced in the House on October 31 as H.R.5885, the bill aims to ensure U.S. companies have preferential access to cutting-edge chips.
It would require semiconductor firms to certify that domestic demand is met before they can obtain licenses to export their most advanced hardware to countries of concern, including China. Its core purpose is to fortify the American AI ecosystem against potential supply shortages.
A key provision driving support from Amazon and Microsoft is a special exemption for trusted entities. This clause would allow them to deploy chips to their global data centers, even in sensitive regions like the Middle East, without facing the lengthy export licensing process that has caused operational delays in the past.
Such a “fast lane” would provide a significant advantage, enabling them to scale their AI infrastructure more rapidly than competitors and serve a global clientele without bureaucratic friction.
Political momentum for the bill is building. Lawmakers are considering it as a potential amendment to the National Defense Authorization Act (NDAA), a must-pass annual defense bill that offers a swift path to becoming law.
Its inclusion would fast-track its passage, though it still faces hurdles from opponents in key committees. Supporters are working to win over key Republicans in both the House and Senate to ensure it moves forward, making it one of the first major congressional efforts to directly regulate AI chip exports.
A High-Stakes Game in the U.S.-China Tech War
This corporate lobbying battle is unfolding against the backdrop of an intensifying U.S.-China tech war.
Washington has already taken decisive steps to curb Beijing’s access to top-tier technology. Just this month, the White House confirmed a definitive ban on Nvidia’s most powerful Blackwell series chips for the Chinese market.
A spokeswoman stated bluntly, “As for the most advanced chips, the ‘Blackwell’ chip, that’s not something we’re interested in selling to China at this time.”
This policy solidifies the administration’s hardline stance on restricting China’s AI development and leaves little room for corporate workarounds.
Beijing has responded with its own aggressive measures to achieve technological sovereignty.
China mandated that all new state-funded data centers must exclusively use domestic processors, effectively creating a protected market for homegrown champions like Huawei.
The directive goes further, ordering projects under construction to halt and remove any installed foreign hardware. These actions have had a devastating and immediate impact on Nvidia’s business in the region, accelerating its search for new growth markets.
Nvidia’s CEO, Jensen Huang, has publicly lamented the collapse of what was once a critical market.
He recently stated, “We went from 95% market share to zero percent, and so, I can’t imagine any policymaker thinking that that’s a good idea.”
The company’s share of China’s high-end AI chip market has plummeted from a dominant position to virtually nothing, a stark financial consequence of geopolitical friction, as Huang has noted amid the escalating chip war.
With the GAIN AI Act now threatening to codify these restrictions further, the pressure on Nvidia is mounting. The ongoing tit-for-tat between the two superpowers continues to reshape the global semiconductor landscape, forcing companies to choose sides and realign their global strategies for a new era of competition.
