Scoop: White House moves to block bill restricting AI chip exports
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Key White House officials are pressing lawmakers on Capitol Hill to keep AI chip export restrictions to China out of the annual defense policy bill, four sources familiar with the matter told Axios.
Why it matters: Nvidia would win big if the GAIN AI Act doesn't make it into the final version of the National Defense Authorization Act.
- AI czar David Sacks had been spearheading an effort to drop the bill, and his effort now has the backing of the White House Office of Legislative Affairs, making the bill's chances of inclusion in the must-pass defense legislation slim to none.
- Negotiations for the annual defense policy bill are in flux as lawmakers try to finalize language.
Driving the news: Administration officials have been making calls to key lawmakers, including House Majority Leader Steve Scalise, telling them to oppose the bill, sources told Axios.
- The bill would require chip companies to fulfill purchases from U.S. customers before exporting to "countries of concern," including China.
- It also includes certain export license exemptions for "trusted" entities.
- Changes to the bill were received well by companies like Amazon and Microsoft.
- Sen. Jim Banks (R-Ind.), the bill's sponsor, and the White House did not respond to requests for comment.
The big picture: Nvidia CEO Jensen Huang is adamant about tapping into the Chinese market and has been successful in convincing key administration officials that it's beneficial for a U.S. company to serve it.
- Huang's pull with the administration briefly came into question after his request that President Trump bring up AI chip sales to Chinese leader Xi Jinping sparked administration infighting and was ultimately shot down.
What's next: House and Senate negotiators are scrambling to finalize the annual defense policy bill ahead of Thanksgiving, with both chambers aiming to take up the legislation in December.
