Washington Divided Over ‘Gain AI Act’ as Tech Titans Clash on Chip Exports
The 'Gain AI Act' is sparking debate in Washington. Senate Majority Leader Chuck Schumer supports the bill, but key Republican backing remains uncertain. Tech giants Amazon and Microsoft endorse it, while Nvidia, controlling 80% of the AI processor market, opposes it due to potential revenue losses.
The bill, currently being considered as an amendment to the annual National Defense Authorization Act (NDAA), aims to prioritize U.S. demand for AI chips over exports to China and other countries under U.S. arms embargoes. Nvidia, which opposes the act due to the threat it poses to its revenue, has significantly increased its lobbying efforts in 2025, spending nearly $3.5 million in the first three quarters, compared to $640,000 in all of 2024.
Amazon and Microsoft support the 'Gain AI Act' to restrict Nvidia's chip exports to China, alongside AI startup Anthropic. The bill would grant them 'trusted entity' status, ensuring priority access to chips without government export licenses. However, some White House officials, including AI adviser David Sacks, have expressed skepticism about the act, arguing that the Commerce Department already has the necessary authority to oversee chip exports. Meanwhile, heavyweights like Meta Platforms and Google's parent company, Alphabet, have yet to take a stance.
The 'Gain AI Act' faces uncertainty in the Senate and House, with key Republican support yet to be secured. Tech giants' support and Nvidia's opposition highlight the bill's potential impact on the AI chip market. As discussions continue, the White House remains divided on the act's necessity.
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