Nvidia Corp. stands to benefit significantly after lawmakers in the United States chose not to include a proposal that would have restricted the company’s ability to export advanced AI chips to China and other US adversaries from a crucial defense policy package, according to a person familiar with the proceedings.
The proposed measure, known as the Guaranteeing Access and Innovation for National Artificial Intelligence (GAIN AI) Act, aimed to mandate semiconductor manufacturers—such as Nvidia and Advanced Micro Devices Inc.—to prioritize American purchasers for their high-performance AI chips before making them available to countries under US arms embargoes.
The act was under consideration to be part of this year’s annual defense bill, scheduled for release this Friday. However, the source noted that the provision does not appear in the current version of the bill, though the legislative landscape could still shift unexpectedly.
Nvidia’s apparent win follows a contentious lobbying effort that saw the company and others in the sector contesting AI safety groups and lawmakers with a tougher stance on China. Nvidia maintained that the legislation would put US producers at a disadvantage in the global marketplace, and emphasized that American customers would not face shortages of its most advanced chip technology.
The debate has gained urgency as the Trump Administration reviews export controls for the H200, a state-of-the-art Nvidia AI chip that is reportedly significantly ahead of any Chinese alternatives and subject to licensing requirements at the moment.
Additionally, President Donald Trump, while previously expressing openness to allowing exports of a downgraded version of Nvidia’s Blackwell chip, faces opposition from key Cabinet officials regarding any such move.
