A significant legislative effort, known as the Guaranteeing Access and Innovation for National Artificial Intelligence (GAIN) AI Act, is gaining traction among major technology companies, aiming to curb chipmaker Nvidia's ability to export advanced AI chips to China. This legislation, which has been incorporated into the National Defence Authorisation Act, mandates that AI chip manufacturers must prioritize fulfilling domestic orders for advanced processors before exporting to foreign buyers. Microsoft has publicly endorsed the bill, while Amazon's cloud division has privately signaled its support to Senate staffers. AI startup Anthropic is also reported to be a backer of the initiative.

The core of the GAIN AI Act is to introduce new trade restrictions that would require exporters to obtain licenses and approvals for shipments of silicon exceeding specific performance limits. Specifically, the legislation states that it should be the policy of the United States and the Department of Commerce to deny licenses for the export of the most powerful AI chips, including those with a total processing power of 4,800 or above, and to restrict the export of advanced artificial intelligence chips to foreign entities if United States entities are waiting and unable to acquire those same chips. Meanwhile, other tech giants like Meta Platforms and Alphabet's Google have not taken a definitive position on the Act, nor has US President Donald Trump.

The world's leading chip manufacturer, Nvidia, has voiced strong opposition to the proposed legislation. On Friday, Nvidia warned that the GAIN AI Act could significantly limit international competition for advanced chips, potentially reducing the computing capabilities available to other nations. An Nvidia spokesperson clarified, 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."

This legislative push by Washington aligns with broader efforts to focus on American interests, providing domestic companies with preferential access to advanced chips while restricting China's access to high-end technology. These measures are driven by concerns that China might leverage advanced AI capabilities to enhance its military. The current rules of the GAIN Act bear a resemblance to certain aspects of previous AI diffusion regulations proposed by US President Joe Biden, which sought to assign specific amounts of computing power to allies and other nations, underlining a consistent strategic approach.