US Pushes for Domestic AI Chip Prioritization in GAIN AI Act Amid Export Restrictions

The AI chip sector faces impending export restrictions as U.S. legislators advocate for bills prioritizing domestic consumers over international buyers.

The Guaranteeing Access and Innovation for National Artificial Intelligence Act of 2025 (GAIN AI Act) was introduced within the National Defense Authorisation Act, necessitating American AI processor developers to prioritize domestic orders for high-performance chips before supplying them overseas.

This latest development unfolds amidst Washington’s delicate negotiations between national security concerns and commercial interests of U.S tech companies.

Recently, the Trump administration repealed the AI Diffusion Rule enacted during the Biden era, which imposed similar export restrictions on computing power through a comprehensive country-tier system. The aim was to regulate the global dissemination of advanced AI chips and models while keeping potent AI systems within U.S. borders and its allies.

Compared to its predecessor, the GAIN AI Act offers a more straightforward approach to chip export controls. This legislation would enforce American semiconductor companies to fulfill domestic orders before shipping advanced processors abroad, thereby establishing a U.S.-centric policy for AI chip distribution.