As an amendment requiring American semiconductor manufacturers to sell to U.S.-based companies first awaits its fate in the National Defense Authorization Act (NDAA), a group of senators are introducing those same provisions through a separate bill.
Led by Sen. Jim Banks, R-Ind., the Guaranteeing Access and Innovation for National Artificial Intelligence (GAIN AI) Act was introduced on Nov. 6 with the support of Sens. Elizabeth Warren, D-Mass., Tom Cotton, R-Ark., Dave McCormick, R-Pa., and Senate Minority Leader Chuck Schumer, D-N.Y.
The act has spurred controversy with its requirement that chip makers in the United States sell to U.S. customers before fulfilling orders from countries competing for artificial intelligence (AI) dominance. Even so, it has still garnered bipartisan support in the Senate.
Banks and Warren’s semiconductor sales amendment – including the same requirements as the GAIN AI Act – was included in the Senate’s version of the NDAA, which passed on a vote of 77-20 last month.
The legislation and amendment specifically target high-performance chips and would require companies exporting those chips to obtain licenses and approval for shipments of semiconductors over certain performance thresholds.
It also gives U.S. buyers a “right of first refusal” and allows those buyers 15 days to decide whether they want to buy those chips before they are sold overseas following a manufacturer’s submission of an application to sell.
By implementing these export controls, the United States would be advancing its national security interests, the senators said.
“The GAIN AI Act makes sure we use American-made technology to strengthen our own economy and security before sending it to adversaries overseas,” Banks said in a statement.
Warren added, “American customers – including small businesses and startups – shouldn’t be forced to wait in line behind China’s tech giants when purchasing the latest AI chips.”
The amendment was criticized by NVIDIA, the world’s largest semiconductor manufacturer, which compared the proposal to the Biden administration’s AI Diffusion Rule. That rule was rescinded earlier this year.
The AI Diffusion Rule divided countries into certain tiers, which determined whether they would have access to U.S. chips-related exports or how much access they could gain.
The House passed its version of the NDAA in September, meaning that lawmakers will have to undergo a reconciliation process to determine whether or not the Banks-Warren NDAA amendment will pass.