Nvidia said the proposed GAIN AI Act would limit global competition for advanced chips and have similar effects as the earlier US AI Diffusion Rule.

The Act, part of the National Defense Authorization Act, would require AI chipmakers to prioritize US domestic orders over foreign customers and mandate exporters seek licenses for chips that exceed certain performance thresholds.

A Nvidia spokesperson warned the bill could restrict competition worldwide in any industry using mainstream computing chips.

The legislation mirrors conditions under former President Joe Biden’s AI Diffusion Rule, which allocated computing power to allies and restricted access for other countries.

Both measures aim to ensure US firms have priority access to advanced chips and limit China’s ability to use AI for military purposes.

Last month, President Donald Trump reached a deal with Nvidia allowing the US government to receive a share of its sales in exchange for resuming exports of banned AI chips to China.

🔗 Source: Reuters

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