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The bill, known as the GAIN AI Act, aims to create a system that gives American buyers priority access to AI chips that are subject to export controls—meaning chips that are not allowed to be shipped to China and other embargoed countries. White House officials are encouraging Congress to reject this proposal, as reported by Bloomberg, based on conversations with individuals who are aware of the matter.
If the GAIN AI Act is not approved, it would also be a setback for some American companies, such as Microsoft, which backed the bill in hopes of securing guaranteed access to equipment and ensuring a steady supply of chips to American data centers in the Middle East, like Saudi Arabia and the UAE, according to the report.
However, the failure of GAIN AI would not signal an end to efforts to limit the export of chips to China. Lawmakers are already working on another separate initiative—a previously undisclosed bill called the SAFE Act 2025—which would formalize existing restrictions. This bill would require the U.S. Department of Commerce to automatically deny any applications for exporting AI chips to China within 30 months if those chips perform above the current government-set threshold.
source: bloomberg.com
If the GAIN AI Act is not approved, it would also be a setback for some American companies, such as Microsoft, which backed the bill in hopes of securing guaranteed access to equipment and ensuring a steady supply of chips to American data centers in the Middle East, like Saudi Arabia and the UAE, according to the report.
However, the failure of GAIN AI would not signal an end to efforts to limit the export of chips to China. Lawmakers are already working on another separate initiative—a previously undisclosed bill called the SAFE Act 2025—which would formalize existing restrictions. This bill would require the U.S. Department of Commerce to automatically deny any applications for exporting AI chips to China within 30 months if those chips perform above the current government-set threshold.
source: bloomberg.com