US Demands Ban on High-End GPU Exports, NVIDIA Responds with Strong Opposition #
The U.S. Senate is advancing legislation that would require American AI processor developers to prioritize domestic orders for high-performance GPUs before selling to foreign buyers.
The proposal, named the “2025 National AI Gain, Access, and Innovation Act” (GAIN AI Act), explicitly calls for a ban on exporting the most powerful AI chips. Lawmakers say the measure will help U.S. small businesses, startups, and universities gain access to the latest processors from companies like AMD and NVIDIA.
However, industry experts warn that the legislation could severely harm U.S. competitiveness and limit global influence in the AI chip market.
NVIDIA strongly opposed the bill, calling it unnecessary and harmful:
“We would never deprive American customers of their rights in order to serve the rest of the world. This proposed bill seeks to solve a problem that doesn’t exist and would limit competition in any industry globally that uses mainstream computing chips.”
— NVIDIA Spokesperson
If passed, the bill would impose new licensing requirements for chips exceeding a 4,800 TOPS performance threshold, effectively restricting the export of advanced GPUs until all U.S. demand is fulfilled.
China remains a critical market, accounting for 13% of NVIDIA’s revenue in the last fiscal year. While the company aims to grow sales in China, U.S. restrictions continue to complicate NVIDIA’s strategy. Analysts argue that limiting NVIDIA’s access could push Chinese companies to fully adopt domestic solutions like Huawei’s AI chips, which would be counterproductive to U.S. goals.
NVIDIA’s CFO Confirms H20 Export License, Acknowledges Revenue Opportunity #
At the Goldman Sachs Communacopia+ Technology Conference, NVIDIA’s CFO Colette Kress confirmed that the company has secured an export license for its H20 chips.
She highlighted that while U.S. export restrictions impacted sales, NVIDIA’s data center revenue still grew by 12% quarter-over-quarter in Q2, with expectations for a 17% increase in Q3.
On H20 shipments to China, Kress stated:
“We have licenses for some key customers in China. We hope to complete these shipments and provide the H20 architecture, but geopolitical coordination is still required.”
Kress projected that easing restrictions could generate $2–5 billion in revenue from H20 sales in Q3 alone, depending on market conditions.
NVIDIA Eyes Samsung for GDDR7 Memory, Targets New China-Specific GPU #
In parallel, NVIDIA is reportedly collaborating with Samsung to double production capacity for GDDR7 memory chips. Industry sources believe this expansion is tied to NVIDIA’s upcoming China-specific GPU, the B40.
Unlike the H20, which failed to generate revenue last quarter due to restrictions, the B40 is designed with export compliance in mind. It will use GDDR7 memory instead of HBM (High Bandwidth Memory), which is subject to stricter U.S. export rules.
- Estimated GDDR7 order: 200 billion KRW (~$150M / ¥1.026B CNY)
- Marks a rare major win for Samsung, which has historically struggled to supply NVIDIA with HBM products
Reports also suggest Samsung is supplying HBM3e memory for NVIDIA’s Blackwell Ultra GPUs, signaling a growing partnership between the two companies.
Key Takeaways #
- The GAIN AI Act could reshape global GPU distribution, prioritizing U.S. entities and restricting exports.
- NVIDIA opposes the bill, warning it will harm global competitiveness and benefit rivals like Huawei.
- H20 export licenses open up a potential $2–5B revenue opportunity for NVIDIA in Q3.
- Samsung collaboration on GDDR7 memory positions NVIDIA to strengthen its China-specific GPU lineup.
Conclusion #
The U.S. government’s push to restrict high-performance GPU exports highlights the growing geopolitical battle over AI dominance. While lawmakers aim to protect domestic access, companies like NVIDIA warn of unintended consequences, including weakening America’s global tech leadership.
At the same time, NVIDIA is diversifying its strategy — securing export licenses, expanding data center revenue, and forging deeper ties with Samsung. As the AI hardware arms race intensifies, the outcome of the GAIN AI Act and NVIDIA’s maneuvering could determine the next phase of global AI innovation.