Tech Titans Rally Behind GAIN AI Act to Regulate Chip Exports

Amazon and Microsoft back the GAIN AI Act, a legislation restricting Nvidia's chip exports to China. The Act mandates AI chipmakers to prioritize domestic orders before foreign ones. Despite the support from major companies, the Act's impact is seen as limited due to existing export regulations.

Global tech giants Amazon and Microsoft have thrown their support behind the GAIN AI Act, a proposed legislation aimed at restricting chipmaker Nvidia's ability to export chips to China, according to a report by the Wall Street Journal.

The GAIN AI Act, short for Guaranteeing Access and Innovation for National Artificial Intelligence, is part of the National Defense Authorization Act. It requires AI chipmakers to prioritize fulfilling domestic orders for advanced processors before catering to international demands. The Act has also garnered support from AI startup Anthropic.

While Microsoft has publicly endorsed the Act, insiders claim Amazon's cloud division quietly expressed their approval to key Senate staffers. The proposed legislation underscores Washington's strategic intentions to prioritize American interests amid concerns over China's potential misuse of advanced AI technologies for military enhancement.

(With inputs from agencies.)