H.R. 5885: Guaranteeing Access and Innovation for National Artificial Intelligence Act of 2025

This bill, known as the Guaranteeing Access and Innovation for National Artificial Intelligence Act of 2025, aims to regulate the export of advanced artificial intelligence (AI) chips to certain countries. Here’s a summary of its key provisions:

Purpose of the Bill

The bill establishes requirements for exporting advanced integrated circuits (AICs) and products related to artificial intelligence, focusing particularly on those intended for countries classified as "countries of concern," which include certain regions in China.

Licensing Requirements

• The Under Secretary of Commerce for Industry and Security must require a license for the export or transfer of covered advanced circuits to entities in these countries.
• Applicants for these licenses must provide a certification that they have given U.S. persons a right of first refusal to acquire the chips before selling them to entities abroad.
• If applicants do not provide this certification, their license requests will be denied.

Right of First Refusal

U.S. persons will have the right to inquire about purchasing advanced AICs before they are sold to foreign entities under the following conditions:

• Public notice must be given, allowing a minimum of 15 days for U.S. persons to express interest.
• U.S. buyers must demonstrate a commitment to complete the purchase within a specified timeframe.
• No backlog of requests from U.S. parties can exist for the AICs in question.

Trusted U.S. Persons

The bill will define and establish a category of "trusted U.S. persons" who may be exempt from some licensing requirements. To qualify as a trusted person, an entity must:

• Implement strict physical and cybersecurity measures.
• Not transfer significant processing capabilities outside the U.S.
• Limit foreign ownership to a small percentage from countries of concern.
• Undergo annual audits to verify compliance with security and ownership conditions.

Definitions Explained

This legislation provides specific definitions for key terms, including:

• Advanced Integrated Circuit: This refers to high-performance AICs with specified processing capabilities.
• Country of Concern: These are nations identified based on U.S. export control regulations, including certain areas in China.
• Covered Advanced Circuit or Product: This includes AICs meant for data centers, outlined as requiring special regulatory attention.

Implementation Timeline

The Under Secretary must develop regulations within 120 days of the bill's enactment to establish specifics about how these provisions will be applied, ensuring clarity and compliance from stakeholders.

Enforcement Measures

The bill anticipates various compliance checks and frameworks, including:

• Record-keeping requirements for entities involved in applying for licenses.
• Penalties for any misrepresentation in license applications.

Conclusion of the Key Clauses

The legislation underscores the United States' commitment to prioritize domestic entities in the tech supply chain while imposing strict controls over exports that could have national security implications. By ensuring U.S. companies have first access to advanced AI chips, the bill aims to bolster the U.S. position in the global technology market.

Relevant Companies

• NVDA (NVIDIA Corporation) - Likely to be directly impacted due to its significant involvement in AI chip production and sales.
• INTC (Intel Corporation) - May face regulatory changes affecting its ability to export advanced chips to specific markets.
• AMD (Advanced Micro Devices, Inc.) - Similar to NVIDIA, its export permissions related to advanced integrated circuits may be affected.