US lawmakers have rejected a potential chip export law, according to a report from Bloomberg.

The Guaranteeing Access and Innovation for National Artificial Intelligence Act of 2025, or GAIN AI Act, would have required advanced chipmakers to give American businesses and persons priority in acquiring chips that would otherwise have required a license to export abroad.

But anonymous sources have said that the bipartisan Act is not included in the US’ annual defense policy bill, set to be released on Friday.

This is a win for advanced chip designers like Nvidia and AMD, who have struck deals with businesses across the world eager to get their hands on the processing power necessary to train and operate AI.

Nvidia CEO Jensen Huang told reporters that the decision to exclude the Act from the defense policy bill was “wise,” adding that the “GAIN AI Act is even more detrimental to the United States than the AI Diffusion Act.”

Huang has been particularly vocal about the company’s intention to regain market share in China. Nvidia's most advanced chips have been shut out by American export controls going back to the Biden administration.

But whether the company will be able to regain a foothold is a separate matter. In September, the Chinese government told companies to stop buying Nvidia chips, citing security concerns about backdoor access.

It is also a victory for the Trump administration. The administration’s AI czar, David Sacks, is in favor of an export-oriented strategy that hooks key allies onto the American AI stack, squeezing Chinese competitors out of the market.