White House Urges Congress to Reject GAIN AI Act

The White House is urging members of Congress to reject the GAIN AI Act, a bipartisan measure designed to restrict the sale of advanced AI chips to China and other adversary nations. The proposed legislation would require chipmakers to prioritize domestic customers, effectively barring the export of high-end accelerators until U.S. supply needs are fully met. Administration officials argue that these restrictions could undermine American innovation and global tech leadership.

Nvidia Inc. has lobbied against the GAIN AI Act, asserting that no U.S. customers currently face product shortages. Conversely, supporters of the bill, including Microsoft Corp. and Amazon.com, Inc., claim the measure is necessary to address national security and domestic supply-chain risks. Treasury Secretary Scott Bessent suggested the U.S. could eventually permit the sale of Blackwell chips to China once they are no longer the most advanced available technology.

Simultaneously, lawmakers are developing the Secure and Feasible Exports (SAFE) Act of 2025. This measure would remove decision-making authority from the executive branch by legally mandating the U.S. Department of Commerce to deny export applications for AI chips more powerful than the H20 for a period of 30 months.