The GAIN AI Act establishes new export controls on advanced artificial intelligence chips (integrated circuits) destined for countries of concern, including China, Russia, Iran, and North Korea. Companies seeking to export these high-performance chips must certify that U.S. customers had a right of first refusal—meaning American businesses had at least 15 business days to match any foreign offer and purchase the chips first. Exporters must also confirm they have no backlog of unfilled U.S. orders and are not offering better prices or terms to foreign buyers than to American ones. The bill requires the Commerce Department to issue detailed regulations within 90 days to implement these requirements. Additionally, it creates an exemption for "trusted U.S. persons" who maintain majority ownership and control of the chips within the U.S., but these entities cannot be more than 10 percent foreign-owned by entities from countries of concern.
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