Chipmaking giant Nvidia has voiced strong opposition to the proposed AI GAIN Act, arguing that the legislation would artificially restrict global competition for advanced semiconductors. The company stated that the act, which stands for the Guaranteeing Access and Innovation for National Artificial Intelligence Act, would have effects similar to the previous AI Diffusion Rule by limiting the computing power available to countries outside the U.S. The bill was introduced as part of the National Defense Authorization Act and would require AI chipmakers to prioritize domestic orders for advanced processors before supplying foreign customers.
An Nvidia spokesperson criticized the proposed legislation, stating, “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.” If enacted, the bill would implement new trade restrictions requiring exporters to obtain licenses and approval for shipments of silicon exceeding specific performance caps, particularly targeting chips with total processing power of 4,800 or above.
The legislation represents Washington’s latest effort to prioritize American technological needs while limiting China’s access to high-end AI capabilities over concerns about military applications. These measures mirror conditions under former President Joe Biden’s AI Diffusion Rule, which allocated computing power levels to allies and other countries. The AI GAIN Act explicitly states that export licenses should be denied for the most powerful AI chips when U.S. entities are unable to acquire them.
The debate over chip exports continues amid ongoing geopolitical tensions. Last month, President Donald Trump made an unprecedented deal with Nvidia, allowing the company to resume exports of banned AI chips to China in exchange for giving the government a cut of its sales. This development highlights the complex balance the U.S. is attempting to maintain between protecting national security interests and preserving the competitive advantage of its leading technology companies in the global market.
