White House Opposes Congress Bid To Curb Nvidia’s AI Chip Sales To China

by Stefan J. Bos, Worthy News Chief International Correspondent

BEIJING/WASHINGTON (Worthy News) – The White House is urging members of the U.S. Congress to reject a measure that would restrict the world’s most valuable semiconductor company’s ability to sell advanced artificial intelligence (AI) chips to Communist-run China and other adversary nations, according to people familiar with the matter.

The proposal, known as the GAIN AI Act, would require U.S. buyers to receive priority access to high-end AI chips covered by export controls—a system that would effectively bar Nvidia Corporation from selling some of its most powerful AI accelerators to China.

Nvidia has lobbied against the bill, arguing it would undermine American competitiveness, disrupt global supply chains, and fail to improve national security. Company officials say American customers already receive priority access to its most advanced chips.

The White House opposition further dims the bill’s prospects, even amid bipartisan support in the U.S. Congress.

MARKETS REACT TO NVIDIA FORECAST

The legislative fight comes as Nvidia delivered a far stronger-than-expected revenue outlook. The corporation expects about $65 billion in sales for the January quarter — roughly $3 billion above analysts’ forecasts — and signaled that a potential half-trillion-dollar surge in AI demand may exceed earlier projections.

Nvidia is currently valued at roughly $3 trillion, making it one of the most valuable companies in history.

Shares climbed on the news as investors believe that global demand for Nvidia’s AI accelerators remains exceptionally strong despite rising geopolitical tensions.

Though included in the Senate’s version of the U.S. defense authorization bill, the GAIN AI Act faces a difficult path as lawmakers balance national-security concerns with fears that sweeping export limits could damage America’s global leadership in AI and advanced semiconductor technology.

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