Request to suspend import restrictions on Chinese-made optical transceivers… Microsoft ($MSFT)

Microsoft has asked the Trump administration to scrap planned restrictions on Chinese-made optical transceivers used in AI data centers, Reuters reported, citing three unnamed sources. The company met White House Office of Science and Technology Policy and National Security Council officials in September to raise supply-chain concerns, according to two sources; Microsoft declined comment and the White House and FCC did not respond to queries. Optical transceivers convert electrical signals to optical signals and are critical components in the high-speed networking that links AI servers and clusters. The push matters because limits on Chinese suppliers could tighten supply and raise costs for U.S. hyperscalers building out AI infrastructure. Watch for whether the administration narrows or delays the rules, and for how the FCC—which has driven recent telecom supply-chain curbs—proceeds.