Microsoft challenges Trump's new ban over major AI risk Faizan Farooque Tue, November 10, 2026 at 9:44 AM EST 1 min read MSFT -0.42% COHR -0.72% LITE +0.81% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Microsoft Corp. (MSFT, Financials) is urging the Trump administration to scrap Chinese optical transceiver limits that might hamper AI data center building.Over worries that Chinese optical transceivers may expose American data centers to espionage, malware, or service outages, the government is considering banning imports.Servers, switches, and other computing equipment communicate via fiber-optic cables.Market research firm Cleanview reports 35 US data centers under construction and 134 planned by Microsoft.The firm and other tech companies met with White House officials in September to explore supply chain issues.Industry leaders say banning Chinese imports might leave pricey AI processors idle while operators find networking equipment.Counterpoint Research estimates that Chinese manufacturers dominate the optical transceiver industry.American companies Coherent and Lumentum offer rival solutions but lack the manufacturing scale to swiftly replace Chinese providers.The Federal Communications Commission may ban 3.2 terabit-per-second equipment.Such items may not reach large-scale manufacturing until 2028, giving local providers time to expand.Monday, Microsoft shares finished at $545.18, up 2.75%.Next, the FCC's import restriction ruling might affect U.S. AI infrastructure growth speed and cost.
