The White House has urged Congress to reject a proposed bill that would place strict limits on Nvidia’s ability to export its advanced AI chips to China and other adversarial nations, according to reports from U.S. officials.
People say the White House is fighting the GAIN AI Act because U.S. customers already have enough chips.
The White House says Nvidia can keep selling its AI chips to China
Nvidia has been fighting to stop the GAIN AI Act from becoming law for several months because it believes the bill will create more problems than it would solve.
The company informed Congress that U.S. customers already have sufficient chips, so there is no danger of a shortage. Limiting sales to China, it argued, would only lower their revenue and slow the development of new AI chips.
The tech giant explained that competitors from other countries will take advantage of these limits, and U.S technology will be at a disadvantage in the global market.
The White House has listened to Nvidia’s pleas and is now asking Congress to reject the bill, as it could do more harm than good. Officials say U.S. companies already have sufficient AI chips, and that the government can always monitor exports to ensure sensitive information does not fall into the wrong hands.
Experts say this is a significant win for Nvidia, as the company can continue selling its chips in large markets and continue to develop new technology. The White House also does not want the U.S. to lose its position in the global tech market, so it will make sure companies like Nvidia can compete with other countries without limitations.
However, not everyone is pleased with the White House’s change of heart, as cloud companies like Microsoft and hyperscalers supported the GAIN AI Act because it would provide them with direct access to advanced AI chips in the U.S. The companies sought to have the law help them compete with Chinese firms and ensure that U.S.-owned data centers in countries such as Saudi Arabia and the United Arab Emirates received the necessary technology.
However, the White House explained that the benefits of allowing companies to sell chips freely to other countries outweigh the advantages that cloud companies would gain from doing so.
Congress is making new rules to control the sale of AI chips
Some members of Congress still want to include the GAIN AI Act as part of the annual defense bill because it will help control how the country sells advanced AI chips to military and economic competitors, such as China. They say other countries could utilize these advanced chips to enhance their technology and gain an advantage in areas such as AI, intelligence research, cloud computing, and military applications.
The other side of Congress is arguing that the bill will create problems for U.S. companies like Nvidia and AMD, as it could slow innovation and harm the competitiveness that America has built in the global tech market.
Lawmakers are also working on a separate measure, known as the SAFE Act of 2025, which would establish strict rules governing the sale of advanced AI chips to China for a period of 30 months.
The bill will ensure that the U.S. government controls sensitive information that leaves the country, as the Commerce Department would be required to deny any requests to export AI chips that exceed current limits. People in favor of this new bill will protect national security and give American companies clearer rules for exporting their products legally.
Congress is becoming more active in regulating semiconductor exports and supervising how U.S. companies sell advanced technology to the rest of the world. The intense involvement shows people are concerned about national security and the ongoing trade and competition with China.
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