White House Rushes to Stop Plan That Threatens Nvidia’s China Exports
If GAIN AI is ultimately blocked, it would clear the way for Nvidia to continue shipping advanced AI chips to data centers in Saudi Arabia.
Quick overview
- Nvidia reported strong quarterly earnings, highlighting its significant impact on the U.S. economy.
- The GAIN AI Act, aimed at restricting AI chip exports to certain countries, is facing opposition from the Trump administration.
- The bill would require U.S. buyers to have the first opportunity to purchase top-tier AI chips and impose a public notice period for major export deals.
- If the bill is blocked, Nvidia could continue exporting advanced AI chips to countries like Saudi Arabia and the UAE.
The revelation comes just hours after the world’s most valuable chipmaker reported another blockbuster quarter. The bill heading to a congressional vote has the backing of Microsoft and Amazon.
Nvidia’s enormous influence over the U.S. economy became even more evident this week. Shortly after the company once again beat Wall Street expectations, reports surfaced that the Trump administration asked Republican lawmakers to vote down a proposal that would restrict Nvidia’s ability to export its advanced AI chips to China and other “countries of concern.”
The measure—called the GAIN AI Act (Guaranteeing AI Innovation and National Access)—was introduced last week by a bipartisan group of senators. Its goal is to impose a “U.S.-first” rule on export licenses for high-end AI chips.
In broad terms, the bill would:
- Require companies exporting top-tier AI chips to certify that U.S. buyers had the first chance to purchase them.
- Impose at least a 15-business-day public notice period before major export deals, allowing U.S. firms, startups, and universities to submit competing bids.
- Direct the Commerce Department’s Bureau of Industry and Security to scrutinize exports to “countries of concern,” including China, North Korea, Iran, Syria, Cuba—as well as Hong Kong and Macau.
- Chips not designed or sold for data-center use would be exempt, meaning the bill targets the GPUs powering large-scale cloud AI, recommendation engines, and ChatGPT-style models.
A Win for Nvidia—But a Headache for Microsoft and Amazon?
According to Bloomberg, Trump administration officials are working behind the scenes to rally votes against the bill—a significant win for Nvidia, which has openly lobbied against it. The company argues that U.S. customers are not facing shortages that justify new export restrictions.
“By trying to solve a problem that doesn’t exist, the proposed bill would limit global competition across any industry that uses conventional compute chips,” a spokesperson told Reuters last month.
If GAIN AI is ultimately blocked, it would clear the way for Nvidia to continue shipping advanced AI chips to data centers in countries like Saudi Arabia and the UAE. In fact, the U.S. Commerce Department on Wednesday approved exports equivalent to up to 35,000 Nvidia Blackwell-class chips to firms based in both Middle Eastern nations.
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