Nvidia’s Lobbying Pays Off in AI Export Fight
Removal of GAIN AI Act Eases Threat of New Limits on China Shipments
Key Takeaways:
- Lawmakers left the GAIN AI Act out of the annual defense bill, handing Nvidia a major win in its fight to avoid new limits on AI chip sales to China.
- The measure would have required chipmakers to prioritize U.S. buyers before exporting to arms-embargoed countries, a proposal opposed by Nvidia and the White House amid broader debates over export controls.
- China hawks plan to pursue stricter curbs through the pending SAFE Act, keeping pressure on AI chip exports despite the provision’s exclusion from the defense bill.
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Nvidia Corp. is on the verge of securing a massive lobbying win after U.S. lawmakers kept a measure out of must-pass defense legislation that would have limited the company’s ability to sell their advanced artificial intelligence chips to China and other adversary nations.
The so-called GAIN AI Act would require chipmakers, including Nvidia and Advanced Micro Devices Inc., to give American customers first dibs on their powerful AI chips before selling in China and other arms-embargoed countries. Lawmakers sought to advance the proposal as part of the annual defense policy bill, which is set to be released on Friday. A person familiar with the defense bill said it is not in the bill, though the situation could still change unexpectedly.
The decision caps a fierce lobbying fight that pitted China hawks and AI safety advocates against Nvidia and other industry players, which have sought to expand their market access to Beijing. Nvidia argued the legislation would restrict global competition for advanced chips, insisting it wasn’t necessary because the company would not deprive American customers seeking to buy high-powered chips.
The high-stakes battle culminated in Nvidia CEO Jensen Huang coming to Washington on Dec. 3. Huang told reporters outside of Speaker Mike Johnson’s office that he was in town to “answer questions about AI.”
The matter has taken on increased urgency as the White House weighs whether to export the H200, an Nvidia AI chip better than any of China’s indigenous products that is currently subject to licensing requirements.
President Donald Trump previously suggested he was open to shipments of a downgraded version of Nvidia’s Blackwell, though key Cabinet members have made clear they’re opposed to such exports.
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White House AI czar David Sacks has continually floated selling more American chips to China to boost U.S. technological leadership globally. The White House sided with Nvidia and lobbied against the provision, Bloomberg News previously reported.
Yet advocates of the legislation have expressed fears about the Trump administration’s approach and sought to limit exports on advanced AI chips to China, raising national security concerns should Beijing use American AI products to strengthen their economy and military.
RELATED:Nvidia Plans to Manufacture AI Chips in US for First Time
Despite their failed attempt, China hawks on Capitol Hill are poised to continue their push for stricter restrictions on cutting-edge AI technology, signaling ongoing challenges for the industry. Lawmakers are working on another bill, the Secure and Feasible Exports, or SAFE, Act, which would codify existing limits on AI chip sales to China.
The failure to include the GAIN AI Act in the defense bill marked a loss for some American hyperscalers and Nvidia’s largest customers, such as Microsoft Corp. and Amazon Corp., which supported the legislation. The policy would preserve their access to hardware over Chinese rivals.
Roxana Tiron (BGOV), Oma Seddiq (BGOV) and Emily Birnbaum contributed to this report.
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