Nvidia Corp. is poised to secure a major lobbying victory as U.S. lawmakers prepare to release defense legislation this Friday without provisions that would have restricted the company's ability to sell advanced artificial intelligence chips to China and other adversary nations, according to Bloomberg on Wednesday. The decision marks a significant win for the chipmaker after a fierce battle pitting China hawks against industry players seeking expanded market access to Beijing.
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A person familiar with the National Defense Authorization Act (NDAA) told Bloomberg the so-called GAIN AI Act will not be included in the final bill, though the situation could still change unexpectedly.
The measure would have required chipmakers, including Nvidia and Advanced Micro Devices Inc. (AMD), to give American customers priority access to powerful AI chips before selling to China and other arms-embargoed countries.
The high-stakes battle culminated Wednesday when Nvidia CEO Jensen Huang visited Washington to meet with President Donald Trump and key lawmakers.
Speaking to reporters outside Speaker Mike Johnson's office, Huang said he was in town to "answer questions about AI." He later called lawmakers' decision to exclude the provision "wise," adding that "the GAIN AI act is even more detrimental to the United States than the AI diffusion act."
The White House sided with Nvidia in the lobbying fight, with AI czar David Sacks continuously advocating for selling more American chips to China to boost U.S. technological leadership globally. Bloomberg previously reported in November that the Trump administration had actively lobbied against the provision, creating a rift with congressional China hawks who raised national security concerns about Beijing potentially using American AI products to strengthen its economy and military.
The Trump administration's opposition to the GAIN AI Act reflected tensions between officials favoring market-driven semiconductor exports and lawmakers pushing tighter controls. The White House Office of Legislative Affairs led the lobbying effort, with officials making calls to key lawmakers including House Majority Leader Steve Scalise.
According to Politico in September, Sacks spearheaded efforts to block the measure from the defense authorization act. Trump officials feared 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.
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.
Nvidia CEO Huang said in an interview on November 19 that the chipmaker's China revenue forecast is zero, though he expressed interest in reengaging the market.
The failure to include the GAIN AI Act marked a loss for some American hyperscalers and Nvidia's largest customers, including Microsoft Corp. and Amazon.com Inc., which supported the legislation.
The policy would have preserved their access to hardware 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 in November. The legislation created a rare public split between Nvidia and two of its biggest customers, with Amazon's cloud unit privately telling Senate staffers it supports the act.
Despite their failed attempt, China hawks on Capitol Hill are poised to continue pushing for stricter restrictions on cutting-edge AI technology. Lawmakers are working on another bill, the Secure and Feasible Exports, or SAFE, Act, which would codify existing limits on AI chip sales to China.
Led by Senator Chris Coons with backing from Senator Pete Ricketts, 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. The competing legislative efforts reflect broad bipartisan support in Congress for limiting Beijing's AI ambitions, signaling ongoing challenges for the industry.
