The U.S. Senate on Thursday passed bipartisan legislation requiring advanced AI chipmakers such as Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) to prioritize American customers over Chinese buyers, a move that could complicate the industry’s push to expand global sales.
The Guaranteeing Access and Innovation for National Artificial Intelligence (GAIN AI) Act is a proposed bill that aims to give domestic companies priority access to advanced AI chips by requiring domestic orders to be fulfilled first before any exports.
The measure, approved as part of the annual defense policy bill, aims to strengthen U.S. competitiveness in emerging technologies and limit exports to China and other adversaries, according to co-sponsor Senator Jim Banks, an Indiana Republican.
“Today, the Senate acted to make sure American customers — including small businesses and startups — aren’t forced to wait in line behind China’s tech giants when purchasing the latest AI chips,” said Senator Elizabeth Warren (D-Mass.), the bill’s Democratic co-sponsor.
Tech companies and trade groups have opposed the legislation, warning that it could stifle innovation and undercut U.S. chipmakers’ global competitiveness.
The bill’s future remains uncertain, as the House of Representatives passed its own version of the defense bill in September without the export-control provisions. Lawmakers from both chambers must now reconcile the differences before sending a final bill to President Donald Trump.
The Senate action comes months after the Trump administration reached a deal with Nvidia and AMD to ease chip export restrictions to China. Nvidia has argued the legislation targets a “nonexistent problem,” noting that the U.S. remains its largest market.
Still, advocates say the move is an important safeguard. The measure is a “major win for U.S. economic competitiveness and national security,” said Brad Carson, president of the nonprofit Americans for Responsible Innovation.