US Senate Passes GAIN Act Restricting Nvidia AI Chip Exports

The United States Senate passed the Guaranteeing Access and Innovation for National Artificial Intelligence (GAIN) AI Act as part of the 2026 National Defense Authorization Act. The legislation requires AI chipmakers, specifically Nvidia Corporation and Advanced Micro Devices, to prioritize domestic orders for advanced processors before supplying foreign customers, particularly those in China.

The measure follows an August agreement where chip firms agreed to pay 15% of revenues from advanced AI chip sales to the US government in exchange for export licenses. While the Senate approved the bill in October, Nvidia has lobbied against it, arguing the law would restrict global competition. Senator Jim Banks, a lead sponsor, expressed suspicion over these lobbying efforts, while Senator Elizabeth Warren stated the act ensures US start-ups are not forced to wait behind Chinese tech giants.

Simultaneously, the Government of China has intensified its own restrictions to reduce dependence on US technology. Coordinated by the Cyberspace Administration of China, customs officials have deployed to major ports to crack down on the import of Nvidia AI processors, including the H20 and RTX Pro 6000D. This follows mid-September directives for Chinese tech firms like Alibaba and ByteDance to halt the purchase and testing of Nvidia products. Beijing aims to triple its advanced semiconductor production next year to ensure supply chain self-sufficiency.