**”Allies Rely on Chinese AI Infrastructure Over US”: Microsoft, Amazon, and Nvidia Urge Trump Administration to Reconsider Semiconductor Export Regulations**
Microsoft, Amazon, and Nvidia have urged the Trump administration to reconsider semiconductor export regulations, arguing that these restrictions serve as a “gift” to the Chinese AI sector. They claim that due to these export controls, their sales are limited, potentially causing them to fall behind Chinese competitors in overseas markets.
On the 27th (local time), Bloomberg reported that executives from Microsoft and Amazon requested the Trump administration to ease the previous Biden administration’s restrictions on AI semiconductor exports to countries like Israel, Saudi Arabia, and the UAE.
In his final term, the Biden administration announced regulations dividing countries into three tiers, restricting AI chip exports. Tier 1, consisting of major allies like South Korea, Japan, Taiwan, the UK, France, Germany, and Canada, can purchase US-made AI chips without restrictions. Countries in Tier 3, including China, Russia, North Korea, Iran, Venezuela, Cuba, Belarus, Iraq, and Syria, are prohibited from importing US AI chips.
The issue lies within Tier 2, which includes most of the world’s countries. This group, comprising US allies like Switzerland, Poland, Greece, Singapore, India, Indonesia, Israel, the UAE, and Saudi Arabia, faces limits on the total quantity of AI chip exports.
Brad Smith, President of Microsoft, stated on the company blog that “this policy restricts AI chip exports to strategically important markets,” warning that an unintended consequence is encouraging Tier 2 countries to seek AI infrastructure and services elsewhere. He added that if left unchanged, this could be a boon to the rapidly expanding Chinese AI sector.
A few hours after Smith posted his remarks, Amazon CEO Andy Jassy expressed similar concerns in a Bloomberg TV interview. He stated, “I don’t know how the Trump administration views it, but I share concerns about imposing restrictions on semiconductor exports to certain US-allied countries,” warning that Amazon might shift its business to countries capable of supplying semiconductors if rules remain unchanged.
The Wall Street Journal cited sources indicating that the Trump administration is contemplating simplifying export control rules while tightening regulations, continuing Biden’s regulatory stance. However, Microsoft, Amazon, and Nvidia oppose this trend.
Nvidia CEO Jensen Huang said in an interview with CNBC that it’s difficult to say if export controls are effective, acknowledging significant competition in China and noting that not just export controls, but companies like Huawei are also very competitive. He mentioned that while Nvidia products have strengths, those exported to China operate at significantly slower speeds, up to 60 times less than top models. Nvidia revealed its China sales have halved since the implementation of export controls compared to before.