Export restrictions on Nvidia are increasing.

Amazon.com, Inc. (NASDAQ: AMZN) and Microsoft Corporation (NASDAQ: MSFT) are coming together behind a new United States law. This law aims to restrict Nvidia Corporation’s (NASDAQ: NVDA) export of artificial intelligence chips to China.

According to a report by the Wall Street Journal, Amazon and Microsoft are backing a bill called the Gain AI Act. This bill aims to tighten exports of advanced AI chips to China and other countries under the export restrictions pertaining to U.S. arms embargoes.

Microsoft openly supports the Gain AI Act bill, while Amazon’s cloud division has privately communicated information regarding this to Senate officials. This situation is turning into a rare public split concerning Nvidia, as Nvidia is the main provider of cloud services for both companies.

A Nvidia spokesperson described this situation as a negative development, stating that the legislation is a “self-harming policy based on science fiction.” Furthermore, the company indicated that the U.S. does not sell restricted products to its competitors and that sales to authorized customers do not disadvantage American buyers.

On the other hand, Meta Platforms, Inc. (NASDAQ: META), Alphabet Inc. (NASDAQ: GOOG, NASDAQ: GOOGL), and Donald Trump have not yet commented on this matter. Trump had previously stated earlier this month that Nvidia’s advanced Blackwell AI chip would not be made available to “other people.”

Anthropic, generally a firm that supports export controls, also backs this policy. The law would compel chip manufacturers to prioritize U.S. demand before exporting their products abroad and grant authorization for chip transfers to certain regions for trusted entities.

Nvidia is actively lobbying against this bill. The company warned that the proposed legislation would unnecessarily affect the semiconductor market, leading to further restrictions. Nvidia CEO Jensen Huang stated earlier this year that the company’s market share in China had decreased from 95% to nearly zero.

The current bill is also under discussion regarding whether it will be added to the annual National Defense Authorization Act. The proposal is supported by key Democrats, such as Senate Minority Leader Chuck Schumer (D-N.Y.), but still awaits approval from Senate Banking Committee Chairman Tim Scott (R-S.C.) and the Republican leadership in the House of Representatives.

Meanwhile, technology stocks lost more than $700 billion in market value on Thursday afternoon. There was a significant decline in stocks due to waning hopes for Fed interest rate cuts and energy shortages related to artificial intelligence, with the Nasdaq 100 dropping by 2.05%. Major companies like Nvidia, Tesla Inc. (NASDAQ: TSLA), Alphabet, Broadcom, Inc. (NASDAQ: AVGO), Amazon, and Microsoft also experienced large declines.

Nvidia closed at $186.86 on Thursday, losing 3.58% of its value, and further fell by 0.50% in after-hours trading to $185.92. The company holds a position above the sector average with a 98% growth and 93% quality rating in Benzinga's Stock Rankings.