Nvidia (NVDA) is on the verge of securing a massive lobbying win after U.S. lawmakers kept a measure out of must-pass defense legislation that would have limited the company’s ability to sell their advanced artificial intelligence chips to China and other adversary nations, Bloomberg News reported.
The proposed GAIN AI Act would require chipmakers such as Nvidia (NVDA) and Advanced Micro Devices (AMD) to prioritize U.S. customers for advanced AI chips before selling to China or other arms-embargoed countries.
Lawmakers sought to advance the proposal as part of the annual defense policy bill, which is set to be released on Friday. A person familiar with the defense bill said it is not in the bill, though the situation could still change unexpectedly, the report said.
Nvidia CEO Jensen Huang met with President Donald Trump and key lawmakers on Wednesday. Huang told reporters outside of Speaker Mike Johnson’s office that he was in town to “answer questions about AI.”
Later, Huang called lawmakers’ decision to not include GAIN AI in the defense bill “wise” and compared it to another policy Nvidia has fought against, the report said.
“The GAIN AI act is even more detrimental to the United States than the AI diffusion act,” Huang said.
Separately, Nvidia’s CEO criticized the idea of establishing a patchwork of state laws regulating AI.