GAIN AI Act of 2025

This bill requires entities that want to export advanced AI chips to countries of concern to first certify that U.S. persons had a chance to buy those chips and that there is no unmet U.S. demand. It also creates a trusted U.S. person status that can bypass certain export license requirements.

Sec. 2, Prohibition on prioritizing countries of concern over U.S. persons for exports of advanced integrated circuits: This section adds a new section to the Export Control Reform Act. It defines key terms like 'advanced integrated circuit' (based on processing performance and bandwidth, with authority to update parameters after 36 months), 'country of concern' (including Country Group D:5 or E, Macau, and Hong Kong), and 'covered circuit or product' (an advanced integrated circuit or product containing one, but excluding those not designed or marketed for data centers). It requires a license to export a covered circuit or product to an entity located or headquartered in a country of concern. The license applicant must certify that U.S. persons had a right of first refusal (via public notice and at least 15 business days to inquire), that there is no current or foreseeable backlog of U.S. requests, and that foreign persons are not getting better pricing or terms. If the certification is missing, the license must be denied. The Under Secretary must issue regulations within 90 days on compliance, recordkeeping, penalties, and guidance. The section also exempts trusted U.S. persons from certain license requirements for exports to non-countries of concern, provided the chip stays under their ownership and control. The Under Secretary must set standards for trusted U.S. person designation within 90 days, including physical and cybersecurity measures, limits on aggregate processing performance abroad, a cap on beneficial ownership by entities from countries of concern, preference for U.S.-sourced chips, and annual audits.