Overview

• Lawmakers introduced the GAIN AI Act as an NDAA amendment that would require AI chipmakers to fulfill U.S. orders before supplying foreign customers.
• The bill directs the Commerce Department to deny export licenses for the most powerful chips, including parts with total processing power of 4,800 or higher, and to restrict exports while U.S. entities wait for deliveries.
• Nvidia criticized the proposal as unnecessary and harmful to competition, saying it already prioritizes U.S. customers and calling the measure a reprise of the AI Diffusion Rule.
• The initiative conflicts with President Donald Trump’s recent export arrangement that allows resumed sales to China in exchange for a reported 15% revenue share from Nvidia and AMD chip sales.
• Industry voices are divided, with a pro-industry group backing the prioritization push, and some companies exploring alternatives such as custom chips, including reported work between OpenAI and Broadcom.