Lobbying Against the GAIN AI Act

Nvidia CEO Jensen Huang made an uncommon foray into Washington politics, meeting with Donald Trump and congressional leaders to oppose the GAIN AI Act’s plan to prioritize domestic buyers before allowing advanced AI chips to be sold abroad. Huang described the proposal as "even more detrimental to the United States than the AI Diffusion Act" and argued that it would slow innovation, create logistical hurdles, and erode America’s competitive edge in AI.

Following Huang’s intervention, lawmakers dropped the chip‑export restriction from the annual defense authorization bill, leaving the broader export‑control framework intact while removing the specific GAIN AI provision.

Warning About State‑Level AI Rules

In the same meetings, Huang cautioned against a growing trend of state‑by‑state AI legislation. He warned that divergent standards across states would create a compliance nightmare for developers, force companies to tailor products to individual zip codes, and pose a national‑security concern. Bills proposing varied disclosure, bias, transparency, and safety requirements are circulating in at least 30 states.

Trump reportedly echoed Huang’s concerns, supporting the idea of a national standard that would supersede state rules. While the current defense bill does not contain such a provision, the discussion signals potential future federal action.

Implications for the AI Industry

The outcome of these policy debates could shape how quickly AI technologies evolve and who gains access to the most powerful hardware. By preventing a bottleneck on chip exports and advocating for uniform regulations, Huang aims to preserve Nvidia’s market leadership and ensure that U.S. firms remain at the forefront of AI development.

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