GAIN AI Act of 2025

This bill requires companies that want to export advanced AI chips to countries of concern to first give U.S. customers a chance to buy those chips. It also creates a special exemption from certain export license requirements for trusted U.S. persons who keep ownership and control of the chips.

Sec. 2, Prohibition on prioritizing countries of concern over U.S. persons for exports of advanced integrated circuits: This section adds a new rule to the Export Control Reform Act. It says the Under Secretary of Commerce for Industry and Security must require a license to export advanced chips to entities in or owned by a country of concern. The license applicant must certify they gave a right of first refusal to U.S. persons. If they don't, the license is denied. Within 120 days, the Under Secretary must write rules on how this works, including public notice, procedures for U.S. persons to exercise the right, recordkeeping, penalties for lying, and guidance on pricing and backlogs. If more than one U.S. person wants to buy, the government cannot pick one over another.

Sec. 2, Exemption from certain license requirement for trusted U.S. persons: The bill says certain export license rules don't apply if the chips go to a non-concern country and stay under the ownership and control of a trusted U.S. person. Within 120 days, the Under Secretary must set standards for becoming a trusted U.S. person, including physical and cybersecurity measures, a rule that most processing power stays in the U.S., a limit of 10% ownership by entities from countries of concern, and annual audits.

Sec. 2, Definitions: The bill defines key terms. An "advanced integrated circuit" includes chips with certain processing power or bandwidth, or those listed under specific export control numbers. The Under Secretary can update these technical parameters after 24 months. A "country of concern" includes countries in certain export control groups, plus Macau and Hong Kong. A "covered advanced circuit or product" is an advanced chip or a product containing one, but not if it's not designed for data centers. A "right of first refusal" means the applicant must give U.S. persons at least 15 days to inquire, prefer U.S. buyers who request to purchase on offered terms and take steps to complete within 15 business days, have no backlog, not foresee a backlog or production cut for U.S. persons in the next 12 months, and not give better pricing or terms to foreign buyers. A "trusted United States person" is one designated under the rules.