US Pushes Domestic-First Policy for AI Chip Exports in GAIN AI Act

The AI chip sector faces impending export restrictions as U.S. legislators advocate for bills compelling domestic firms to prioritize domestic clients over international buyers.

One such bill is the Guaranteeing Access and Innovation for National Artificial Intelligence Act of 2025 (GAIN AI Act), which was proposed as part of the National Defense Authorization Act. This legislation would oblige American developers of AI processors to fulfill domestic orders for high-performance chips before supplying them abroad.

This shift comes amidst Washington’s struggle to reconcile national security concerns with the commercial interests of U.S. tech companies.

Recently, the Trump administration repealed the Biden-era AI Diffusion Rule, which had enforced comparable restrictions on computing power exports via a comprehensive country-tier system. The objective of this earlier framework was to regulate the global dissemination of advanced AI chips and models while keeping potent AI systems within U.S. borders and its allies.

Compared to its predecessor, the GAIN AI Act adopts a more straightforward approach to chip export controls.

Under the legislation, American semiconductor companies would be compelled to fulfill domestic orders before shipping advanced processors overseas, thereby implementing a U.S.-first policy for AI chip distribution.