US Lawmakers Propose 'GAIN AI Act' to Prioritize American Access to Advanced AI GPUs

Congress Considers Forcing Nvidia to Sell Leading GPUs to Americans First

Lawmakers are considering forcing Nvidia and AMD to sell their most powerful GPUs to US customers before they are exported to foreign markets such as China. The GAIN AI Act of 2025 was originally added as an amendment to the National Defense Authorization Act of 2026 last month. The Senate included the GAIN AI Act in the latest draft of the defense bill, according to the nonprofit Americans for Responsible Innovation. The bill's goal is to ensure that US customers, "including small businesses, startups, and universities," receive first dibs on the most powerful GPUs -- a key resource for training next-generation AI models. "The demand for advanced artificial intelligence chips far exceeds the supply, and United States persons are forced to wait many months, if not longer, to acquire the latest chips," the text says. "At the same time, United States chip developers are selling advanced artificial intelligence chips to entities in countries that are subject to a United States arms embargo or countries that have a close relationship with such countries, so that United States persons are unable to acquire such chips," the bill adds. In response, the GAIN AI Act calls for giving US persons the "right-of-first-refusal" for the most powerful GPUs, forcing Nvidia and AMD to prioritize sales to US customers over foreign buyers. Nvidia and AMD could only apply for export licenses to ship the GPUs to a country such as China if the companies had "no current backlog of requests from United States persons for the circuit or product or a comparable circuit or product," the text adds. Nvidia and AMD would also be barred from "providing advantageous pricing or terms" to foreign buyers over US customers. Current US policy already bars Nvidia from shipping its most powerful GPUs, including the RTX 4090 and RTX 5090, to China. But this summer, the company secured clearance from the Trump administration to sell a less powerful enterprise-grade GPU, known as the H20, to the Chinese market in return for giving the US government 15% of sales revenue. President Trump had also hinted he might allow Nvidia to export newer GPUs to China, featuring a downgraded version of its Blackwell architecture. However, the GAIN AI Act could block such exports -- and possibly other gaming graphics cards -- since it calls for restricting "the export of less advanced artificial intelligence chips to foreign entities in countries of concern so long as United States entities are waiting and unable to acquire those same chips." It appears US customers would receive first dibs on a class of GPUs below the top-tier chips currently blocked from exporting to China. Americans for Responsible Innovation calls the GAIN AI Act a "huge win" for the US tech industry, assuming the legislation remains in the National Defense Authorization Act, which has only started to move through the Senate. "Globally, these chips are supply-constrained, which means that every advanced chip sold abroad is a chip the US can't use to accelerate American R&D and economic growth," said the nonprofit's president, Brad Carson. "As we compete to lead on this dual-use technology, including the GAIN AI Act in the NDAA would be a major win for US economic competitiveness and national security." Nvidia and AMD didn't immediately respond to a request for comment. But last week, Nvidia said in an earnings call that it still hasn't shipped any H20 GPUs to China because the company is still working through "geopolitical issues" between the US and Chinese governments. On Tuesday, the company also tweeted: "The rumor that H20 reduced our supply of either H100/H200 or Blackwell is also categorically false -- selling H20 has no impact on our ability to supply other Nvidia products."

Nvidia says 'We never deprive American customers in order to serve the rest of the world' -- company says GAIN AI Act addresses a problem that doesn't exist

The bill, which aimed to regulate shipments of AI GPUs to adversaries and prioritize U.S. buyers, as proposed by U.S. senators earlier this week, made quite a splash in America. To a degree, Nvidia issued a statement claiming that the U.S. was, is, and will remain its primary market, implying that no regulations are needed for the company to serve America. "The U.S. has always been and will continue to be our largest market," a statement sent to Tom's Hardware reads. "We never deprive American customers in order to serve the rest of the world. In trying to solve a problem that does not exist, the proposed bill would restrict competition worldwide in any industry that uses mainstream computing chips. While it may have good intentions, this bill is just another variation of the AI Diffusion Rule and would have similar effects on American leadership and the U.S. economy." Earlier this week, U.S. legislators introduced the GAIN AI Act of 2025 as part of their defense policy package, aiming to restrict the export of advanced AI GPUs and prioritize access for domestic buyers. If passed into law, this measure would enforce strict export licensing conditions for AI accelerators to D:5 countries of concern (read: China), particularly targeting sales to China and nations closely aligned with it. Indeed, according to Nvidia's Form 10-K, sales to American companies totaled 49.9%, China accounted for 28% of the company's sales in FY2024, whereas Singapore (which is a billing address, as Nvidia puts it) totaled 18% of the company's sales. The bill outlines specific technical thresholds to classify a chip as 'advanced,' taking a page from the Biden administration's 2023 book when it comes to benchmarks, but making them stronger when it comes to memory bandwidth. Any GPU with a total processing performance (TPP) of 2,400 or higher, a performance density over 3.2 (TPP divided by die area), or bandwidth exceeding 1.4 TB/s (DRAM), 1.1 TB/s (interconnect), or 1.7 TB/s combined would be subject to export controls. Products exceeding a TPP of 4,800 would be outright barred from export to restricted countries, which include Nvidia's H100 (TPP 16,000) and B300 (TPP 60,000), as well as AMD's Instinct MI308. In accordance with new rules, exporters (i.e., AMD and Nvidia) would need to certify that U.S. buyers were given the first opportunity to purchase, that there are no pending domestic orders, and that the export will not slow local shipments or favor foreign clients with better pricing or contract terms. Additionally, they must ensure that foreign buyers will not use the hardware to compete against American firms globally. If any of these conditions are unmet, the export license must be denied. The new export rules would obviously apply even to older AI GPUs -- assuming they are still in production, of course -- like Nvidia's HGX H20 or L2 PCIe, which still meet the defined performance thresholds set by the Biden administration. Although Nvidia has claimed that H20 shipments to China do not interfere with the domestic supply of H100, H200, or Blackwell chips, the new legislation could significantly formalize such limitations on transactions in the future.

U.S. legislators want Nvidia to give American buyers 'first option' in AI GPU purchases before selling chips to other countries, including allies -- GAIN AI Act debuts in defense spending bill

American buyers should be prioritized ahead of all others, according to U.S. legislators The U.S. Senate on Tuesday unveiled a preliminary version of the annual defense policy package that includes a requirement for American developers of AI processors to prioritize domestic orders for high-performance AI processors before supplying them to overseas buyers and explicitly calls to deny exports of highest-end AI GPUs. The legislators call their initiative the Guaranteeing Access and Innovation for National Artificial Intelligence Act of 2025 (GAIN AI Act) and their goal is to ensure that American 'small businesses, start-ups, and universities' can lay their hands on the latest AI GPUs from AMD, Nvidia, etc before clients in other countries. However, if the bill becomes a law, it will hit American companies hard. "Advanced AI chips are the jet engine that is going to enable the U.S. AI industry to lead for the next decade," said Brad Carson, president of Americans for Responsible Innovation (ARI). "Globally, these chips are currently supply-constrained, which means that every advanced chip sold abroad is a chip the U.S. cannot use to accelerate American R&D and economic growth. As we compete to lead on this dual-use technology, including the GAIN AI Act in the NDAA would be a major win for U.S. economic competitiveness and national security." This GAIN AI Act demands developers of AI processors, such as AMD or Nvidia, to give U.S. buyers first opportunity to purchase advanced AI hardware before selling to foreign nations, including allied nations like European countries or the U.K. and adversaries like China. To do so, the Act proposes to establish export controls on all 'advanced' GPUs (more on this later) to be shipped outside of the U.S. and deny export licenses on the 'most powerful chips.' To get the export license, the exporter must confirm to certain conditions: If one of the certifications is missing, the export request must be denied, according to the proposal. What is perhaps no less important about the act is that it sets precise criteria of what U.S. legislators consider 'advanced integrated circuit,' or advanced AI GPU. To qualify as 'advanced', a processor has meet any one of the following criteria: Essentially, the legislators plan to export control all fairly sophisticated processors, including Nvidia's HGX H20 (because of high memory bandwidth) or L2 PCIe (because of high performance density) that are now about two years old. As a result, if the proposed bill passes as a law and is signed by the President, then it will again restrict sales of AMD's Instinct MI308 or Nvidia's HGX H20 both to all customers outside of the U.S. Furthermore, GPUs with a TPP of 4800 or higher will be prohibited for exports, so Nvidia will be unable to sell its H100 and more advaced GPUs outside of the U.S. as even H100 has a TPP score of 16,000 (B300 has a TPP score of 60,000). Coincidentally, Nvidia on Wednesday issued a statement claiming that shipments of its H20 to customers in China does not affect its ability to serve clients in the U.S. "The rumor that H20 reduced our supply of either H100/H200 or Blackwell is also categorically false -- selling H20 has no impact on our ability to supply other NVIDIA products," the statement reads.

Nvidia Opposes 'GAIN AI Act' as Senator Champions GPUs for Americans First

Don't miss out on our latest stories. Add PCMag as a preferred source on Google. Nvidia is trying to kill the momentum behind a proposed US law that would force it to sell the most advanced GPUs to Americans first before they could be exported abroad. "In trying to solve a problem that does not exist, the proposed bill would restrict competition worldwide in any industry that uses mainstream computing chips," the company tweeted today. Nvidia took direct aim at the "GAIN AI Act" after the US Senate added the legislation to the latest draft of the National Defense Authorization Act of 2026. Whether the proposal will survive future drafts remains unclear. But the bill's sponsor, US Sen. Jim Banks (R-Indiana), says it "puts American companies and researchers before our adversaries like China. This is America First in action." Banks also spoke with former Trump administration strategist and political pundit Steve Bannon, urging other senators to support and pass the legislation. "There's nothing more America first than making sure we dominate the race to AI, and the technologies of the future," he added. This comes as Democrats have also been critical of Nvidia's advanced AI chip sales to China, citing national security risks. If it does pass, the GAIN AI Act could drastically change how Nvidia and AMD conduct business. The two companies would only be able to export their leading GPUs if there's "no current backlog of requests from United States persons for the circuit or product or a comparable circuit or product," the text says. Although current US policy already prohibits the export of the most powerful GPUs, including the RTX 5090, to China, the GAIN AI Act could restrict even more products since it appears to target a class of GPUs below the top-tier chips. In response, Nvidia initially blasted the proposal, comparing it to the "doomer science fiction" AI chip regulations from the Biden administration. On Friday, the company went out of its way to push back again, saying, "The US has always been and will continue to be our largest market. We never deprive American customers in order to serve the rest of the world." Nvidia has been trying to sell a downgraded H20 GPU for AI training to the Chinese market. Although Nvidia has received clearance from Trump to export the product to China, the company told investors last week it's still working through "geopolitical issues" between the US and Chinese governments. "If geopolitical issues subside, we should ship $2 billion to $5 billion in H20 revenue for Q3," Nvidia's CFO said. Outside the GAIN AI Act, the company has also been speaking out against the US requiring location tracking inside GPUs meant for China.

US senator wants to give Americans first dibs on AI silicon

We've got hungry American datacenters to feed, argued the lawmaker - a revival Nvidia dubs 'doomer science fiction' +Comment US lawmakers are looking to apply Trump's America-First agenda to advanced semiconductors by giving US buyers first dibs while restricting the sale of most high-end chips needed for AI to the rest of the world. "Artificial Intelligence is a transformative technology and United States policy should ensure that United States persons, including small businesses, startups, and universities are in the best position to innovate and harness the potential of artificial intelligence," the "Guaranteeing Access and Innovation for National Artificial Intelligence" or GAIN AI Act of 2025 reads. If approved by Congress and signed into law by the president, the legislation, introduced as an amendment to the National Defense Authorization Act by Senator Jim Banks (R-IN), would require exporters seeking licenses to countries of concern to certify US buyers had the right-of-first-refusal on advanced silicon. It would also make vendors meet all domestic demand before they can flog their wares to foreign customers. The rules would enact new trade restrictions mandating that exporters obtain approval from the US Commerce Department for any shipment of advanced semiconductors exceeding steep performance caps, which we've covered in depth previously. "It should be the policy of the United States and the Department of Commerce to deny licenses for the export of the most powerful AI chips including such chips with total processing power of 4,800 or above and to restrict the export of advanced artificial intelligence chips to foreign entities so long as United States entities are waiting and unable to acquire those same chips," the proposed legislation reads. These performance caps, which were enacted in large part during the Biden administration, were designed to prevent the United States' most powerful chips from reaching countries of concern, most notably China. As these rules are written, most high-end datacenter GPUs and some gaming cards, like Nvidia's RTX 5090, would be subject to license restrictions. Unsurprisingly, Nvidia isn't a fan of the proposed rules, which we'll emphasize again have not been signed into law. "The AI Diffusion Rule was a self-defeating policy, based on doomer science fiction, and should not be revived. Our sales to customers worldwide do not deprive U.S. customers of anything -- and in fact expand the market for many U.S. businesses and industries," an Nvidia spokesperson told El Reg. "The pundits feeding fake news to Congress about chip supply are attempting to overturn President Trump's AI Action Plan and surrender America's chance to lead in AI and computing worldwide." To Nvidia's point, the GAIN AI Act makes several assumptions in support of the proposed rules, many of which are predicated on flawed logic and a fundamental misunderstanding of semiconductor and AI supply chains. The bill makes the case that demand for advanced artificial intelligence chips far exceeds the supply, and US companies are being forced to wait months in order to get their hands on them. While it's true that AI infrastructure is very much a seller's market at the moment, this is kind of how a free market is supposed to work. You snooze you lose. However, the bill also misses a far more important element. The AI infrastructure supply chains aren't as simple as buying chips, or more specifically, GPU servers. They aren't much good if you don't have somewhere to put them. These systems can't be dropped in any old datacenter either. A single server can consume as much power as an entire rack from just a few short years ago. These systems often require advanced thermal management systems like direct to chip liquid cooling, rear-door heat exchangers, and coolant distribution units, all of which have to be in place before a single system can power on. Nvidia's CEO has made it abundantly clear that the company prioritizes customers who have the datacenter capacity required to field the chips, so they're not sitting unused in a warehouse, while another customer that does have capacity ready to go is forced to wait. The GAIN AI Act also calls out the production of advanced semiconductors specifically for sale in countries of concern -- a rather unambiguous reference to Nvidia and AMD's China-spec H20 and MI308 accelerators, which were cut down to comply with performance caps enacted during the Biden administration. The Trump administration cleared the way to resume shipments of these chips earlier this summer on the condition that Uncle Sam gets a 15 percent cut of all sales to China. The amendment also argues that more chips for China means fewer for American buyers. However, this overlooks just how uncompetitive these parts are compared to chipmakers' mainstream offerings. The H20 is based on now three year old technology and delivers an order of magnitude less performance (296 teraFLOPS FP8 vs. 5-15 petaFLOPS FP8/FP4) than the Blackwell-based alternatives currently available to US customers. And because these chips are based on an older process tech from TSMC, they don't even eat into production capacity that could go towards more attractive Blackwell parts as the bill suggests. As such, the bill would only serve to limit Nvidia and AMD's addressable market while simultaneously creating new markets for increasingly competitive Chinese silicon to find a foothold. ®

Nvidia says GAIN AI Act would restrict competition, likens it to AI Diffusion Rule

Sept 5 (Reuters) - Nvidia (NVDA.O), opens new tab said on Friday the AI GAIN Act would restrict global competition for advanced chips, with similar effects on the U.S. leadership and economy as the AI Diffusion Rule, which put limits on the computing power countries could have. Short for Guaranteeing Access and Innovation for National Artificial Intelligence Act, the GAIN AI Act was introduced as part of the National Defense Authorization Act and stipulates that AI chipmakers prioritize domestic orders for advanced processors before supplying them to foreign customers. "We never deprive American customers in order to serve the rest of the world. In trying to solve a problem that does not exist, the proposed bill would restrict competition worldwide in any industry that uses mainstream computing chips," an Nvidia spokesperson said. If passed into law, the bill would enact new trade restrictions mandating exporters obtain licenses and approval for the shipments of silicon exceeding certain performance caps. "It should be the policy of the United States and the Department of Commerce to deny licenses for the export of the most powerful AI chips, including such chips with total processing power of 4,800 or above and to restrict the export of advanced artificial intelligence chips to foreign entities so long as United States entities are waiting and unable to acquire those same chips," the legislation reads. The rules mirror some conditions under former U.S. President Joe Biden's AI diffusion rule, which allocated certain levels of computing power to allies and other countries. The AI Diffusion Rule and AI GAIN Act are attempts by Washington to prioritize American needs, ensuring domestic firms gain access to advanced chips while limiting China's ability to obtain high-end tech amid fears that the country would use AI capabilities to supercharge its military. Last month, President Donald Trump made an unprecedented deal with Nvidia to give the government a cut of its sales in exchange for resuming exports of banned AI chips to China. Reporting by Zaheer Kachwala in Bengaluru; Editing by Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab

Nvidia Is Not Happy With the Gain AI Act, Says As Much

In a move drawing considerable attention across the tech industry, Nvidia Corporation has publicly critiqued the recently proposed Gain AI Act, emphasizing its potential to stifle competition in the rapidly evolving artificial intelligence sector. The GAIN AI Act, which stands for Guaranteeing Access and Innovation for National Artificial Intelligence Act, was introduced as part of the U.S. National Defense Authorization Act, with the goal of ensuring that the United States is the dominant market force for AI. It has not yet passed and remains a hotly debated policy topic both here and abroad because of the restrictions it looks to enact. Backers say it aims to protect American market interests by prioritizing domestic orders for advanced AI chips and processors, as well as secure supply chains for critical AI hardware, and theoretically reduce our reliance on foreign manufacturers. So it's no huge surprise that Nvidia, a Chinese corporation and currently the world's biggest company, would take aim at a law that might potentially restrict the competitiveness of foreign technology. The company said as much during a recent industry forum. "We never deprive American customers in order to serve the rest of the world. In trying to solve a problem that does not exist, the proposed bill would restrict competition worldwide in any industry that uses mainstream computing chips," an Nvidia spokesperson said. It depends on who you ask. Essentially, the law seeks to strengthen national security and economic competitiveness by ensuring that key AI components remain accessible to American companies and government agencies before they are supplied abroad. Its language takes a hard line on what the priority should be for the United States government. "It should be the policy of the United States and the Department of Commerce to deny licenses for the export of the most powerful AI chips, including such chips with total processing power of 4,800 or above and to restrict the export of advanced artificial intelligence chips to foreign entities so long as United States entities are waiting and unable to acquire those same chips," the legislation reads. Nvidia's critique reflects broader industry anxieties about regulatory environments that might hinder innovation. As global competition intensifies, particularly with formidable advances in AI from regions such as China, firms like Nvidia are closely watching how regulatory frameworks are taking shape abroad. But it's not just foreign companies. American market players, too, have said it could hit many domestic operations hard. "Advanced AI chips are the jet engine that is going to enable the U.S. AI industry to lead for the next decade," Brad Carson, president of Americans for Responsible Innovation (ARI), a lobbying group for the AI industry, said in a widely distributed statement. "Globally, these chips are currently supply-constrained, which means that every advanced chip sold abroad is a chip the U.S. cannot use to accelerate American R&D and economic growth," Carson said. "As we compete to lead on this dual-use technology, including the GAIN AI Act in the NDAA would be a major win for U.S. economic competitiveness and national security." Nvidia didn't stop there. It then took aim at an earlier attempt to make the U.S. more competitive in the chipmaker market, a policy called the AI Diffusion Rule, which ultimately failed. The company minced no words in a follow-up statement, saying that the past attempts by legislators to control market forces based on protectionist policies was ultimately a bad idea. "The AI Diffusion Rule was a self-defeating policy, based on doomer science fiction, and should not be revived," it read. "Our sales to customers worldwide do not deprive U.S. customers of anythingâ€"and in fact expand the market for many U.S. businesses and industries," it said. "The pundits feeding fake news to Congress about chip supply are attempting to overturn President Trump's AI Action Plan and surrender America's chance to lead in AI and computing worldwide." The challenge will be creating laws that are as dynamic as the technologies they aim to govern, fostering a climate where innovation and ethical accountability are not mutually exclusive, but rather mutually reinforcing. Nvidia's mention of the AI Diffusion rule was no accident. That ill-fated policy had many of the same political goals but ultimately stumbled at the finish line and was a relatively toothless attempt to rein in some of the world's most competitive companies. The Biden administration’s AI Diffusion rule, enacted in January 2025, represented a significant shift in U.S. export controls targeting cutting-edge artificial intelligence technology. Designed to curb the spread of advanced AI tools to rival nations, the regulation mandated licensing for the sale of high-end AI chips and imposed strict caps on computing power accessible to foreign recipients. Its goal was to slow the diffusion of sensitive AI capabilities that could enhance military or strategic applications abroad. However, the Trump-era approach to export controls, which focused on a more targeted, bilateral framework, was poised to replace the Biden administration’s broader strategy. President Trump had announced plans to rescind the AI Diffusion rule, criticizing it as overly bureaucratic and potentially hindering U.S. innovation. Instead, his administration favored engaging in country-specific agreements to control export practices, aiming for a more adaptable, case-by-case approach. Though the AI Diffusion rule was ultimately rolled back, the Bureau of Industry and Security (BIS) signaled a renewed emphasis on enforcing existing regulations. The agency issued a notice reinforcing actions against companies with a “high probability†of violations, warning that increased scrutiny would be applied to entities with knowledge of potential breaches. Whether this latest attempt to advance American interests meets a similar fate remains to be seen.

Nvidia says GAIN AI Act would restrict competition, likens it to AI Diffusion Rule - The Economic Times

Nvidia said on Friday the AI GAIN Act would restrict global competition for advanced chips, with similar effects on the US leadership and economy as the AI Diffusion Rule, which put limits on the computing power countries could have. Short for Guaranteeing Access and Innovation for National Artificial Intelligence Act, the GAIN AI Act was introduced as part of the National Defense Authorization Act and stipulates that AI chipmakers prioritize domestic orders for advanced processors before supplying them to foreign customers. "We never deprive American customers in order to serve the rest of the world. In trying to solve a problem that does not exist, the proposed bill would restrict competition worldwide in any industry that uses mainstream computing chips," an Nvidia spokesperson said. If passed into law, the bill would enact new trade restrictions mandating exporters obtain licenses and approval for the shipments of silicon exceeding certain performance caps. "It should be the policy of the United States and the Department of Commerce to deny licenses for the export of the most powerful AI chips, including such chips with total processing power of 4,800 or above and to restrict the export of advanced artificial intelligence chips to foreign entities so long as United States entities are waiting and unable to acquire those same chips," the legislation reads. The rules mirror some conditions under former U.S. President Joe Biden's AI diffusion rule, which allocated certain levels of computing power to allies and other countries. The AI Diffusion Rule and AI GAIN Act are attempts by Washington to prioritize American needs, ensuring domestic firms gain access to advanced chips while limiting China's ability to obtain high-end tech amid fears that the country would use AI capabilities to supercharge its military. Last month, President Donald Trump made an unprecedented deal with Nvidia to give the government a cut of its sales in exchange for resuming exports of banned AI chips to China.

NVIDIA & AMD Could Be 'Forced' To Sell Their GPUs to American Customers First, Before Exporting Them To Other Regions

It seems that US lawmakers have stepped forward to ensure that American consumers get access to products from NVIDIA/AMD first, potentially solving the nation's chip shortages. Well, the US Senate has prioritized ensuring that the American tech stack is in safe hands, and respective lawmakers have tried to restrict GPU manufacturers like NVIDIA within the scope of their business with nations like China. Now, in an amendment to the National Defense Authorization Act of 2026, lawmakers have proposed a new "Guaranteeing Access and Innovation for National Artificial Intelligence Act of 2025" (GAIN AI Act), which explicitly restricts the likes of NVIDIA and AMD from selling their AI chips and GPUs to US consumers and businesses first, before exporting them. Senator Jim Banks submitted the amendment, which is mainly targeted towards ensuring that the US has the most access to NVIDIA/AMD AI chips, and that "small businesses, startups, and universities" have access to cutting-edge computing technologies, without waiting for them for several months. The document mentions that the demand for AI chips has been far larger than the supply, which has created a bottleneck, which is why consumers are facing massive delays in accessing American AI technology. It should be the policy of United States and Department of Commerce.... to restrict the export of advanced artificial intelligence chips to foreign entities so long as United States entities are waiting and unable to acquire those same chips. The scope of the GAIN AI Act does look limited to AI chips for now, but it could still be expanded to consumer GPUs as well, considering that they also play a vital role in AI computing and fulfilling the needs of American consumers. Interestingly, NVIDIA has also replied to this stance, claiming that the 'AI chip' shortage narrative brought by US lawmakers "doesn't exist" and that the bill is another variation of the AI diffusion rule. The firm claims that it would restrict American technology in nations like China, putting the dominance of the US at stake. US lawmakers have proposed rather interesting efforts to modify NVIDIA's business with other nations. One variation includes integrating a 'kill switch' in all AI chips sold to China. Such moves make it clear that America wants to control GPU manufacturers' business with other nations, especially at a time when AI has become a national priority.

Trump's Nvidia Export Deal Collides With AI GAIN Act -- Chipmaker Warns New Bill Could Cripple Global Competition - Broadcom (NASDAQ:AVGO), Advanced Micro Devices (NASDAQ:AMD)

NVIDIA Corp. NVDA warned on Friday that proposed Congressional legislation could undermine its global competitiveness, creating tension with President Donald Trump's recent export deal allowing chip sales to China. Check out the current price of NVDA stock here. GAIN Act Prioritizes Domestic Orders The Guaranteeing Access and Innovation for National Artificial Intelligence Act was introduced as part of the National Defense Authorization Act and stipulates that AI chipmakers prioritize domestic orders for advanced processors before supplying them to foreign customers. The legislation mandates Commerce Department denial of export licenses for "the most powerful AI chips, including such chips with total processing power of 4,800 or above," while U.S. entities await chip deliveries. Nvidia Disputes Need for Restrictions An Nvidia spokesperson rejected the bill's premise on Friday, according to a Reuters report. "We never deprive American customers in order to serve the rest of the world. In trying to solve a problem that does not exist, the proposed bill would restrict competition worldwide in any industry that uses mainstream computing chips," the company stated. See Also: Options Corner: Why Nvidia's Red-Stained Chart May Be Good News For Contrarian Investors Nvidia said the AI GAIN Act would "restrict global competition for advanced chips, with similar effects on the U.S. leadership and economy as the AI Diffusion Rule." Trump's Revenue-Sharing Deal Trump's August agreement with Nvidia and Advanced Micro Devices Inc. AMD requires both companies to pay the U.S. government 15% of their AI chip sales revenue to China in exchange for export licenses. Strategic Competition Concerns Drive Policy Both the AI Diffusion Rule and the GAIN Act are part of Washington's push to put American interests first by making sure U.S. companies get advanced chips before others, while also blocking China from getting top-tier tech over concerns it could boost its military with AI, according to the report. Tech Companies Look for Alternatives As policy pressure grows, companies like OpenAI are already making moves. Its partnership with Broadcom Inc. AVGO to develop custom AI chips shows that major players may be looking to reduce dependence on Nvidia's GPUs and gain more control over their own computing infrastructure. NVDA stock dropped 2.70% to $167.02, and according to Benzinga's Edge Stock Rankings, the California-based company shows strong Momentum 88.69, Growth 97.82, and Quality 93.45 scores. Track the performance of other players in this segment. Read Next: Cathie Wood Says Inflation Could Fall To 'Zero Or Even Negative' As AI Boom And Trump's Policies Could Push GDP Growth To 7% Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. AMDAdvanced Micro Devices Inc$150.01-7.28%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum84.38Growth94.13Quality73.22Value12.78Price TrendShortMediumLongOverviewAVGOBroadcom Inc$332.418.60%NVDANVIDIA Corp$166.09-3.24%Market News and Data brought to you by Benzinga APIs

Nvidia on Gain AI Act says proposed bill would restrict competition worldwide in any industry that uses mainstream computing chips

NVIDIA Corporation is the world leader in the design, development, and marketing of programmable graphics processors. The group also develops associated software. Net sales break down by family of products as follows: - computing and networking solutions (77.8%): data center platforms and infrastructure, Ethernet interconnect solutions, high-performance computing solutions, platforms and solutions for autonomous and intelligent vehicles, solutions for enterprise artificial intelligence infrastructure, crypto-currency mining processors, embedded computer boards for robotics, teaching, learning and artificial intelligence development, etc.; - graphics processors (22.2%): for PCs, game consoles, video game streaming platforms, workstations, etc. (GeForce, NVIDIA RTX, Quadro brands, etc.). The group also offers laptops, desktops, gaming computers, computer peripherals (monitors, mice, joysticks, remote controls, etc.), software for visual and virtual computing, platforms for automotive infotainment systems and cloud collaboration platforms. Net sales break down by industry between data storage (78%), gaming (17.1%), professional visualization (2.5%), automotive (1.8%) and other (0.6%). Net sales are distributed geographically as follows: the United States (44.3%), Taiwan (22%), China (16.9%) and other (16.8%).

Nvidia says GAIN AI Act would restrict competition, likens it to AI Diffusion Rule

(Reuters) -Nvidia said on Friday the AI GAIN Act would restrict global competition for advanced chips, with similar effects on the U.S. leadership and economy as the AI Diffusion Rule, which put limits on the computing power countries could have. Short for Guaranteeing Access and Innovation for National Artificial Intelligence Act, the GAIN AI Act was introduced as part of the National Defense Authorization Act and stipulates that AI chipmakers prioritize domestic orders for advanced processors before supplying them to foreign customers. "We never deprive American customers in order to serve the rest of the world. In trying to solve a problem that does not exist, the proposed bill would restrict competition worldwide in any industry that uses mainstream computing chips," an Nvidia spokesperson said. If passed into law, the bill would enact new trade restrictions mandating exporters obtain licenses and approval for the shipments of silicon exceeding certain performance caps. "It should be the policy of the United States and the Department of Commerce to deny licenses for the export of the most powerful AI chips, including such chips with total processing power of 4,800 or above and to restrict the export of advanced artificial intelligence chips to foreign entities so long as United States entities are waiting and unable to acquire those same chips," the legislation reads. The rules mirror some conditions under former U.S. President Joe Biden's AI diffusion rule, which allocated certain levels of computing power to allies and other countries. The AI Diffusion Rule and AI GAIN Act are attempts by Washington to prioritize American needs, ensuring domestic firms gain access to advanced chips while limiting China's ability to obtain high-end tech amid fears that the country would use AI capabilities to supercharge its military. Last month, President Donald Trump made an unprecedented deal with Nvidia to give the government a cut of its sales in exchange for resuming exports of banned AI chips to China. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Alan Barona)