Despite pressure from the White House and right-wing influencers, the House Foreign Affairs Committee overwhelmingly voted 42-2 on Wednesday in favor of a bill that would enable Congress to limit the sale of sought-after computer chips to China and other countries. Last year, the Trump administration and its Big Tech allies agreed to sell chips essential for producing artificial intelligence (AI) tools to nations like China. This marked a reversal of restrictions implemented by the Biden administration aimed at preventing the U. S. from falling behind in AI development. These moves were unpopular among some hawkish members of President Donald Trump’s party—lawmakers aligned with AI skeptics within the MAGA movement, who have grown wary of Trump’s perceived deference to Big Tech oligarchs. As CNBC reports, major chipmaker Nvidia stands to be a primary beneficiary of the administration’s plans to sell chips to China. (One stipulation of such sales is that the chipmaker would give the U. S. government a 25% cut. ) The AI Overwatch Act, proposed by Rep. Brian Mast (R-Fla. ), could disrupt these plans: It would require approval from both the House Foreign Affairs Committee and the Senate Banking Committee for any shipment licenses of advanced chips within 30 days, granting lawmakers the authority to block sales through a joint resolution.

The bill comes as the Trump Administration intends to grant licenses enabling Nvidia to sell its H200 chips to China—the H200 being significantly more powerful than processors previously allowed for export. CNBC further stated: If enacted, the AI Overwatch Act would revoke existing licenses for AI chip transfers and enforce a temporary ban until the administration presents a national security strategy on AI exports. It includes exemptions for ‘trusted’ U. S. companies exporting chips abroad under U. S. oversight, provided they comply with security standards. Mast’s bill faced opposition from Trump’s AI and cryptocurrency czar David Sachs (a major AI investor), as well as Nvidia, which some analysts estimate could earn up to $30 billion annually if the administration’s chip export plans proceed. More from MS NOW Daily Must reads from Today’s list Congress is not the only impending hurdle. Reuters, citing three anonymous sources familiar with the matter, reported last week that Chinese customs authorities declared Nvidia’s H200 chips “are not permitted to enter China, ” adding further complexity to the situation. On social media, some MAGA influencers, including Laura Loomer, launched a campaign to pressure against the bill, though the campaign’s credibility was questioned when observers noticed many posts used nearly identical wording, implying possible coordination. Despite this, the campaign failed to stop Mast’s bill in committee. However, expect continued resistance from pro-tech Trump supporters and Big Tech as Congress debates whether to enact this proposal into law. Ja’han Jones is an opinion blogger for MS NOW. He previously wrote for The ReidOut Blog.