AsianFin -- The Trump administration is urging lawmakers to reject legislation that would restrict artificial intelligence (AI) chip exports to China, marking a victory for Nvidia Corp. and a potential setback for American cloud computing giants seeking preferential access to advanced semiconductors.
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White House officials are lobbying members of Congress to vote against the GAIN AI Act, an annual defense policy bill requiring chipmakers to prioritize U.S. customers before shipping AI processors to China and other adversary nations, Bloomberg reported on Thursday. The legislation would effectively bar Nvidia and its competitor Advanced Micro Devices Inc. (AMD) from selling their most advanced products to the Asian country.
Axios echoed the report, citing sources that key White House officials are pressing lawmakers to keep AI chip restrictions on China out of the GAIN AI Act. Trump administration officials have been reportedly making calls to key lawmarkers, including House Majority Leader Steve Scalise, telling them to oppose the bill.
The administration's position underscores the tension between congressional China hawks pushing for tighter semiconductor controls and Trump officials who want American technology to dominate global markets. The White House Office of Legislative Affairs is leading the lobbying effort, according to Bloomberg, though the office didn't respond to requests for comment.
The White House stance deals a blow to Microsoft Corp. and Amazon.com Inc., which supported the measure. Both companies backed the legislation because it would preserve their hardware access over Chinese rivals while easing shipments of advanced AI chips to U.S.-owned data centers in regions like Saudi Arabia and the United Arab Emirates, the Wall Street Journal reported last week.
The legislation has created a rare public split between Nvidia and two of its biggest customers. It was reported that Amazon's cloud unit privately told Senate staffers it supports the act， joining Microsoft's public backing. The policy includes exemptions for tech companies that would no longer need government-approved export licenses when shipping chips to regions like the Middle East， potentially giving them advantages over competitors.
Nvidia has publicly lobbied against the legislation, insisting no U.S. customers face shortages of its products. The company spent nearly $3.5 million on lobbying in the first three quarters of thisyear，up from $640,000 in all of 2024, according to OpenSecrets data. CEO Jensen Huang said Wednesday in a Bloomberg interview that the chipmaker's China revenue forecast is zero， though he expressed interest in reengaging the market.
White House AI czar David Sacks had been spearheading efforts to block the GAIN AI Act from the National Defense Authorization Act, Politico reported in September. The administration officials have been making calls to key lawmakers,including House Majority Leader Steve Scalise, urging them to oppose the bill. The measure passed the Senate in October as part of the NDAA but faces uncertain prospects as Congress negotiates the final version of the annual defense legislation.
Trump officials fear the language would conflict with the president's recent decisions allowing certain chip sales to China in exchange for revenue-sharing arrangements with Nvidia and AMD, per the report. The administration has argued the U.S. must boost technology exports to prevent buyers from turning to foreign suppliers.
Even if the GAIN AI Act fails, lawmakers are developing simpler legislation called the SAFE Act of 2025 that would codify existing limits on AI chip sales to China, according to Bloomberg. The measure would require the Commerce Department to deny all applications for sales of AI chips more powerful than currently allowed models like the H20, effective for 30 months. Senator Chris Coons is leading that effort, with Senator Pete Ricketts also backing the bill.
The competing legislative efforts reflect broad bipartisan support in Congress for limiting Beijing's AI ambitions, even as the administration pursues a different approach emphasizing market dominance over restrictions.
