Category: Stock Market

Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) are supporting legislation aimed at further restricting Nvidia’s (NASDAQ: NVDA) exports to China, citing congressional aides and knowledgeable sources.

Microsoft publicly endorsed the Gain AI Act, a proposed law that requires Nvidia and other tech exporters to prioritize U.S. demands over exports to embargoed markets, such as China. According to the WSJ, representatives from Amazon’s cloud division informed Senate staff that they favored the bill. The Gain AI Act would give U.S.-based tech companies preferential access to Nvidia’s AI chips, primarily benefiting them. The WSJ also noted that Anthropic, backed by Alphabet (NASDAQ: GOOGL), supports the policy. The report indicates that U.S. lawmakers are considering the act as a bipartisan amendment to the National Defense Authorization Act.

Earlier this year, the Trump administration’s tighter export restrictions on China made it difficult for Nvidia to access the lucrative Chinese market, which prompted the legislation. Nvidia faces a near-complete ban on selling its most advanced chips in China, despite some loosened restrictions by Trump.

Recent reports suggest Nvidia will not even be able to sell its lower-power AI chips there. Additionally, Nvidia faces increasing opposition in China as Beijing pushes for complete AI independence.