The White House is urging Congress to reject legislation that would place stricter limits on exports of advanced AI chips—such as those from Nvidia Corp.—to China and other foreign buyers, according to a Bloomberg report.
The proposed bill, part of the so-called “GAIN AI” effort and currently under consideration in a defence-spending package, would require U.S. chipmakers to prioritise domestic customers and limit shipments abroad until U.S. supply needs are met. Backers argue it strengthens national-security controls and addresses domestic supply-chain risks.
But the White House counters that such restrictions could undermine U.S. tech leadership. Administration officials say putting drastic export limits on Nvidia and other chip firms would hamper innovation, push foreign customers toward competitors, and erode the U.S.’s global position in the AI hardware supply chain.
The tension between Congress and the executive branch highlights a broader strategic trade-off: how to balance national-security concerns over China’s access to next-generation AI hardware with economic and industrial-policy goals around U.S. technology dominance and global market access.
Industry voices, including Nvidia, warn that overly aggressive export controls may backfire by discouraging investment, fragmenting the global ecosystem, and giving non-U.S. firms a competitive edge. Meanwhile, some large U.S. tech buyers—such as Amazon.com, Inc. and Microsoft Corporation—have publicly supported the bill, arguing it levels the field by forcing chipmakers to serve U.S. demand first.
With the bill embedded in must-pass defence legislation, the outcome will depend on whether lawmakers can reach a compromise acceptable to both Congress and the White House. A failure to resolve the impasse could delay the policy or force adjustments in how export controls are structured — either way creating uncertainty for supply-chain investment, Nvidia’s global business, and U.S.–China tech competition.
This article was written by Eamonn Sheridan at investinglive.com.