Bipartisan Bill Would Give American Companies First Dibs on Top AI Chips

Two congressmen are introducing a bill to give U.S. companies first dibs on advanced computer chips before they can be sold to certain foreign countries.

“We cannot sell the latest advanced AI chips to our country’s primary adversary,” Rep. John Moolenaar (R-Mich.) posted on X on Oct. 29. He wrote that selling Nvidia’s best AI chip to China “would be akin to giving Iran weapons grade uranium.”

Nvidia Blackwell chips are currently under export restriction, but a similar version of the company’s H20 chips can be exported to China. This bill would not stop the advanced chips from being exported, but it would ensure American chip purchase requests are fulfilled before the chips can be sold to China.

Moolenaar has previously expressed concern about the Chinese Communist Party’s development of AI because it sells its technology to Russia, Iran, and proxy groups, which then attack American allies.

“AI-enabled drone swarms sold to Iran with sophisticated autonomous navigation, cooperative networking, electronic warfare capabilities, and target discrimination could threaten American or Israeli units in the region in ways that current systems may struggle to counter,” he stated in an August press release.

To protect national security, the congressmen want to make sure the United States maintains the lead in AI development. The bill is being introduced by Moolenaar, chairman and ranking member of the House Select Committee on China, and Raja Krishnamoorthi (D-Ill.), as the rapid development of artificial intelligence has spurred demand for advanced chips. If it becomes law, the bill would require exporters of advanced chip technology to get a license to export to countries of concern.

“At a time when the most advanced chips are limited in supply, growing our economy and supporting American ingenuity should come before facilitating the CCP’s military modernization and human rights abuses,” said Krishnamoorthi.

To keep American companies first in line, the bill would require U.S. advanced chip makers to prioritize American customers before exporting to countries of concern, such as China, Russia, Cuba, North Korea, and eight others on the State Department’s list.

Selling advanced chips to China “would mean selling the Chinese Communist Party the rope with which to hang the United States,” states a report from American Compass, a conservative think tank. The report states that exporting advanced AI chips to China is akin to supporting China’s military, because it will empower the People’s Liberation Army’s leading AI labs.

The new bill would require exporters to offer the chips to American companies first via public notice and give them the opportunity to decline purchasing the chips. They would have to show that no Americans are waiting to purchase the chips before being granted the export license.

The Epoch Times contacted Nvidia for comment on the legislation.

The topic of China’s purchase of Nvidia’s advanced Blackwell chips was expected to be part of the Oct. 30 meeting between President Donald Trump and Chinese leader Xi Jinping in Busan, South Korea. Although the semiconductor topic came up, the most advanced chips, Blackwell, were not part of the discussion.