The Donald Trump administration has urged Congress to reject a proposed measure that would restrict NVIDIA Corp.’s ability to sell artificial intelligence chips to China and other embargoed nations, Bloomberg reported on Thursday, citing people familiar with the discussions.
The proposal, known as the bipartisan GAIN AI Act, seeks to establish a system requiring chipmakers to give U.S. companies priority access to AI chips before any sales are allowed to China or other restricted countries.
The GAIN Act remains in its early legislative stages, and lawmakers are still debating whether to attach it to the annual defense authorization bill.
The White House’s opposition marks a win for Nvidia, which has been actively lobbying for the ability to maintain broader international chip sales. China had been one of Nvidia’s key markets until earlier this year, when the company indicated it would remove the region from its forward-looking sales forecasts.
The situation unfolds as China steps up scrutiny on U.S.-made semiconductors and accelerates efforts to achieve full self-reliance in AI technology.
Bloomberg’s report also came shortly after Nvidia posted stronger-than-expected third-quarter results and issued an optimistic outlook for the current period. CEO Jensen Huang additionally rejected concerns that AI-driven valuations were forming a market bubble.
