NVIDIA has voiced its apprehensions regarding the GAIN AI Act, contending that the legislation stifles global chip - industry competition and erodes the United States' economic dominance. The act mandates that chip producers give precedence to fulfilling domestic orders within the United States and imposes limitations on the export of high - performance chips. This act bears a resemblance to previous policy measures (here you can add the specific name of the similar previous policy if there is one, such as "the Export Control Reform Act of 2018" for a more accurate reference), with the shared goal of safeguarding the United States' access to cutting - edge chips while curbing China's acquisition of relevant technologies.

The deal struck between the Trump administration and NVIDIA underscores the intricate nature of U.S. policies towards China. In the face of intense rivalry in the global chip market, the precise ramifications of the act are yet to be determined. In the context of the global chip market, companies are constantly vying for market share, technological superiority, and talent. The GAIN AI Act's restrictions on chip exports could potentially disrupt the existing supply chains and business models of chip manufacturers. For example, some companies may have long - standing international partnerships that rely on the free flow of chips. Restricting exports could lead to a loss of these partnerships and a decrease in revenue. Moreover, from a geopolitical perspective, the act may trigger retaliatory measures from other countries, further complicating the global trade landscape. All these factors contribute to the uncertainty surrounding the act's impact.