Senate Includes GAIN AI Act Prioritizing US AI Chip Buyers

The U.S. Senate has introduced the GAIN AI Act as part of the 2026 National Defense Authorization Act, aiming to require American chipmakers like Nvidia and AMD to prioritize domestic buyers of advanced AI processors before exporting them abroad, including to allies. The legislation mandates a 'first right of refusal' for U.S. customers such as startups, universities, and small businesses, addressing critical shortages of high-performance AI chips like Nvidia's H100, H200, and AMD's Instinct series. Export licenses for these chips would require no backlog of U.S. orders and prohibit better pricing or terms for foreign buyers, with the goal of preserving American competitiveness and national security amid global supply constraints. While supporters argue this will boost U.S. AI leadership and economic growth, Nvidia strongly opposes the bill, calling it based on exaggerated threat models and warning it could undermine the U.S. tech industry's global position. The act also extends export restrictions beyond adversaries like China to include allies in Europe and the UK, raising potential diplomatic tensions. Overall, the bill reflects a push to secure American access to cutting-edge AI technology amid rising geopolitical and economic competition.