AI export control bill passes Senate as NDAA amendment====================================================== ALEX WROBLEWSKI/AFP via Getty Images | Get the latest federal technology news delivered to your inbox.||
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[](mailto:?body=The%20GAIN%20AI%20Act%2C%20which%20forces%20chip%20manufacturers%20to%20prioritize%20U.S.-based%20customers%2C%20made%20its%20way%20into%20the%20Senate%E2%80%99s%20final%20National%20Defense%20Authorization%20Act%20text.%0A%0Ahttps%3A//www.nextgov.com/artificial-intelligence/2025/10/ai-export-control-bill-passes-senate-ndaa-amendment/408762/&subject=Nextgov.com%3A%20AI%20export%20control%20bill%20passes%20Senate%20as%20NDAA%20amendment) By [Alexandra Kelley](/voices/alexandra-kelley/18507/?oref=ng-post-author?oref=rf-post-author)-| October 10, 2025 04:01 PM ETThe GAIN AI Act, which forces chip manufacturers to prioritize U.S.-based customers, made its way into the Senate’s final National Defense Authorization Act text.——————————————————————————————————————————————————————* [Congress](/topic/ng-congress/?oref=ng-article-topics)* [International](/topic/international/?oref=ng-article-topics)* [Industry](/topic/industry/?oref=ng-article-topics)* 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[](mailto:?body=The%20GAIN%20AI%20Act%2C%20which%20forces%20chip%20manufacturers%20to%20prioritize%20U.S.-based%20customers%2C%20made%20its%20way%20into%20the%20Senate%E2%80%99s%20final%20National%20Defense%20Authorization%20Act%20text.%0A%0Ahttps%3A//www.nextgov.com/artificial-intelligence/2025/10/ai-export-control-bill-passes-senate-ndaa-amendment/408762/&subject=Nextgov.com%3A%20AI%20export%20control%20bill%20passes%20Senate%20as%20NDAA%20amendment)On Thursday, the Senate voted 77-20 to pass the annual defense policy bill, the National Defense Authorization Act, which included an amendment setting export controls for artificial intelligence-tailored semiconductor chips.Initially introduced by Sen. Jim Banks, R-Ind., as a separate bill, the Guaranteeing Access and Innovation for National Artificial Intelligence Act of 2025 mandates that major chip manufacturers exporting their products from America prioritize U.S.-based customers in their sales. The goal of the bill is to ensure the U.S. can lead in AI system development and deployment by avoiding supply constraints.Included in the manager’s package of noncontroversial amendments to the fiscal year 2026 NDAA, the GAIN Act stipulates that chip manufacturers working to sell their products abroad will also be required to fulfill all outstanding U.S.-based orders, not offer an advantageous price abroad and not sell to competing countries.’The GAIN AI Act is simply an American first amendment to the NDAA defense bill,’ Banks said on [Steve Bannon’s podcast in September](https://x.com/Bannons_WarRoom/status/1963994878477472024). ‘It’s very simple: it says you can’t export American-made chips to China or other adversarial countries if there is a backlog or demand for those chips in the United States first.”Today, the Senate acted to make sure American customers — including small businesses and startups — aren’t forced to wait in line behind China’s tech giants when purchasing the latest AI chips,’ Sen. Elizabeth Warren, D-Mass., said in a statement. ‘This bipartisan amendment is an important step to address the long wait times that U.S. companies face when purchasing these chips and promote continued U.S. technological innovation and leadership.’Tech policy experts also celebrated the GAIN Act’s Senate passage. AI advocacy group Americans for Responsible Innovation sent a letter in [early September](https://ari.us/wp-content/uploads/2025/09/Letter-to-Congress-Keep-the-GAIN-AI-Act-in-the-NDAA-9-9-25.pdf) to Senate leaders that championed the amendment. The organization’s missive focused on how NVIDIA sales to China, for example, could be detrimental to rival U.S. firms looking to leverage advanced computing chips like the H20 and Blackwell models.’In the Senate, it’s a badge of honor to put the U.S. first,’ ARI President Brad Carson said in a statement. ‘As we work to keep the U.S. ahead on AI development, we need advanced AI chipmakers to sell to American companies before going to countries of concern. The GAIN AI Act is a major win for U.S. economic competitiveness and national security.’Amid the tug-of-war over AI chip access due to geopolitical tensions, NVIDIA CEO Jensen Huang [has stated](https://www.nextgov.com/emerging-tech/2025/05/nvidia-keep-shanghai-operations-despite-lawmaker-concerns/405698/) that the company’s research operations will continue at its Shanghai location.NVIDIA has previously pushed back on export control regimes, notably the Biden administration’s now-rescinded [AI Diffusion Rule](https://www.nextgov.com/emerging-tech/2025/01/commerce-announces-new-export-control-us-ai-products/402131/) that restricted the company’s access to adversarial countries’ markets.With the House having already passed its own version of the NDAA in early September, lawmakers will now head to reconciliation proceedings between both chambers before a final version is agreed upon. 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