Bill prioritizing American customers for AI chips not expected to make it into final NDAA, sources say
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With the defense authorization bill being finalized this week, the chips-centric GAIN AI Act lost steam, according to sources familiar with the proceedings, but an amendment prohibiting U.S. investment in Chinese technology is expected to be included.
The Guaranteeing Access and Innovation for National Artificial Intelligence Act is not expected to be included in the 2026 National Defense Authorization Act as an amendment, two sources familiar with the proceedings confirmed to Nextgov/FCW, but a separate bill focused on restricting U.S. investment in Chinese technology is slated to make it in.
The GAIN AI Act has been hotly contested in Washington. Its primary mission is to ensure that American customers have access to advanced computing chips before foreign buyers to ensure the U.S. maintains a competitive advantage in the global AI race.
As an amendment to the NDAA, the GAIN AI Act made it through the Senate, but the House version of the defense bill did not include it.
GAIN AI has had varying reactions from industry, earning support from leaders like Microsoft and advocacy groups like Americans for Responsible Innovation, while semiconductor chip manufacturer NVIDIA and advocacy group the Semiconductor Industry Association have been opposed.
As the final text of the NDAA is expected to be released later this week following markups in conference committee, according to the same sources, the GAIN AI Act is not expected to be a part of it. Alternatively, one source said they are “pretty optimistic and confident” that the Foreign Investment Guardrails to Help Thwart China Act will be included.
“Maybe GAIN is dead, but there is still a chance to save the FIGHT China Act,” one source said.
The FIGHT China Act would prohibit U.S. funding from going towards AI systems, quantum computing technologies, hypersonic system materials and other military-oriented technologies in China. Like GAIN, the FIGHT China Act was introduced in both chambers, initially authored by Sen. John Cornyn, R-Texas, and made it into the Senate version of the NDAA as an amendment, but did not appear in the House version.
As an amendment, FIGHT has “a strong amount of lawmaker support,” amid conference committee procedures, the same source said.