TLDR
- Nvidia CEO Jensen Huang and President Trump discussed chip export controls Wednesday in Washington
- Proposed GAIN AI Act won’t make it into the defense bill, which Huang called a “wise” decision
- Huang criticized state-level AI regulations as potential industry roadblock and security risk
- Trump indicated he made his export stance clear to Huang, calling the CEO intelligent
- Huang refuted smuggling concerns by pointing to GPUs’ two-ton weight, 1.5 million parts, and $3 million cost
Jensen Huang brought Nvidia’s policy concerns directly to Washington Wednesday. The CEO’s schedule included a meeting with President Trump focused on chip export restrictions.
The visit comes as Congress weighs new AI chip export measures. These potential rules could reshape how Nvidia sells its products to countries like China.
“We talked in general about export controls,” Huang told reporters outside Capitol Hill. He reiterated Nvidia’s backing for controls ensuring American companies get top-tier chips first.
Trump’s response was characteristically terse. When asked about the meeting, he called Huang a “smart man.” The president confirmed Huang understands his position on export controls and chip sales to China.
The White House is currently reviewing whether Nvidia can sell H200 chips to Chinese buyers. These chips represent the previous generation compared to Nvidia’s newest flagship products.
Export Legislation Stalls
The GAIN AI Act faced a key test this week. The measure would require chipmakers to prioritize U.S. customers before seeking export licenses for nations deemed concerning.
Bloomberg reported the provision won’t appear in the National Defense Authorization Act. Sources cited lack of support among lawmakers.
Huang praised this outcome. He told reporters the GAIN AI Act would harm American interests more than the AI Diffusion Act.
Nvidia has consistently argued these restrictions damage competitiveness in global AI markets. The company mounted an active opposition campaign.
House Majority Leader Steve Scalise confirmed the provision lacks votes. He told CNBC lawmakers will continue seeking a national AI framework.
Federal Versus State Regulation Fight
Huang spent considerable time attacking state-level AI regulation concepts. His message emphasized urgency and national security.
“State-by-state AI regulation would drag this industry into a halt,” the CEO said. He positioned federal regulation as the only sensible approach.
The tech industry created “Leading the Future,” a super PAC designed to fight state regulations. Companies view inconsistent state rules as dangerous to innovation.
Trump urged Congress last month to preempt state AI laws with federal standards. That measure also failed to reach the current defense bill.
Scalise indicated the legislative effort continues. Lawmakers plan to pursue national AI standards through future bills.
Smuggling Claims Dismissed
Huang addressed smuggling allegations at a Center for Strategic and International Studies event. Critics have suggested Nvidia chips reach banned countries through illegal networks.
The CEO countered with technical specifications. Each data center GPU weighs two tons. The units contain 1.5 million individual parts. Power consumption hits 200,000 watts per chip. Each costs $3 million.
“Every so often somebody says these GPUs are being smuggled,” Huang said. “I really would love to see it – not to mention you have to smuggle enough of them to fill a football field.”
The physical constraints make large-scale smuggling operations impractical, according to Huang’s argument. The chips require specialized infrastructure and installation.
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