NVDA•NVDA•U.S. lawmakers from both parties are pushing for tougher restrictions on China's access to advanced AI chips after media reports about former Nvidia CEO Jensen Huang heightened scrutiny of the company's national security role. Proposals include greater congressional oversight of export rules, tracking chip locations, restrictions on equipment sales to China and regulation of remote access to chips.
Lawmakers are considering adding export restrictions to the annual defense authorization bill, which funds the military and typically attracts bipartisan support. A Senate version includes the AI Overwatch Act, Chip Security Act and Match Act; House Speaker Mike Johnson said Thursday that a growing consensus in Congress favors new restrictions on chip exports to China.
The AI Overwatch Act would give Congress a larger role in reviewing changes to export rules, potentially making it harder for future administrations to ease restrictions on Nvidia's advanced chips. The Chip Security Act would require chipmakers to track advanced AI processors and notify the government if they suspect chips have reached prohibited users. The Match Act would pressure U.S. allies to restrict sales and maintenance of advanced chipmaking equipment destined for China.
The Remote Access Security Act would let the Commerce Department regulate Chinese AI companies' remote use of computing power from overseas data centers equipped with Nvidia chips. The House passed the bill in January, and it is awaiting Senate consideration; Nvidia said in July that enactment could have “a material impact on our business.” Nvidia said revenue from chip sales to Chinese data centers was near zero in August and did not expect that to change in the third quarter.
