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A High-Stakes Conversation in Washington

Nvidia CEO Jensen Huang confirmed that he met with President Donald Trump on Wednesday to discuss U.S. export controls on advanced semiconductors. Their conversation comes at a pivotal moment, as lawmakers weigh whether new restrictions on AI chip sales should be added to the National Defense Authorization Act — a bill that guides over $800 billion in annual defense spending.

Huang emphasized that Nvidia supports export controls designed to maintain U.S. technological leadership but cautioned against policies that could unintentionally weaken American companies competing in the global AI race.

“We support export controls, and we believe American firms should have first access to the most advanced AI chips,” Huang said during a briefing on Capitol Hill. “But the approach matters.”

Pressure Over AI Chip Sales to China

At the center of the debate is the proposed Guaranteeing Access and Innovation for National Artificial Intelligence (GAIN AI) Act, which would force Nvidia and AMD to prioritize U.S. buyers over foreign customers — particularly in China, which remains one of the world’s largest chip markets.

Although early discussions signaled possible inclusion in the NDAA, sources familiar with negotiations told Bloomberg the measure is unlikely to be added this year. Huang welcomed that decision, warning that the GAIN AI Act could do more harm than good.

He also compared it to the earlier AI Diffusion Act, arguing both proposals risk slowing AI development in the United States while empowering foreign competitors to move faster.

Huang Pushes Back Against State-Level AI Regulation

Beyond export policy, Huang issued a pointed warning about the growing trend of states crafting their own AI laws. In 2024 alone, more than 30 states introduced or passed bills focused on AI transparency, safety, or governance — a patchwork Huang says will paralyze innovation.

“State-by-state AI regulation would drag this industry into a halt,” he said. “It creates national security risks when the United States needs to advance AI as quickly as possible.”

This fragmentation has prompted the AI industry to launch a super PAC, Leading the Future, aimed at pushing for uniform federal guidelines.

The Push for a Single Federal Standard

President Trump recently urged lawmakers to include a federal preemption clause in the NDAA that would override state AI laws, establishing one nationwide standard. However, House Majority Leader Steve Scalise said the proposal doesn’t have enough support at the moment.

“We’ll keep working on it,” Scalise said, noting that bipartisan discussions are ongoing as Congress attempts to balance consumer protections with America’s technological competitiveness.

What’s at Stake for the U.S.

The debate over chip exports and AI regulation comes as the United States battles to maintain dominance in a global AI industry projected to surpass $1.3 trillion by 2030. Nvidia alone controls more than 80 percent of the AI chip market, making its leadership critical to national security and economic growth.

Huang’s visit to Washington underscores how deeply intertwined AI policy has become with defense, trade, and technological strategy — and highlights the growing urgency to establish rules that protect American innovation without stifling it.