A potential ban on the import of Chinese optical transceiver modules into the US would inflict collateral damage on US hyperscalers, exacerbating a supply bottleneck that no American firm can ease, research firm Counterpoint warned on Wednesday.

The proposed ban on Chinese optical modules would disrupt the hundreds of billions of dollars’ worth of AI infrastructure that US firms are standing up in the country. The so-called hyperscalers, known for their extraordinary spending, like Amazon.com Inc. and Microsoft Corp., will face higher costs if Chinese optics suppliers are cut off, bringing about lower utilization of powerful and pricey AI accelerators, according to Counterpoint analyst Neil Shah.