A group of bipartisan lawmakers introduced a bill on Thursday aimed at stopping the smuggling of artificial intelligence (AI) chips into unauthorized areas.
This legislation is part of broader initiatives in Washington to limit competition with China and to prevent US technology from reaching adversaries.
The proposed law, referred to as The Chips Security Act, mandates that companies verify the locations of high-end AI chips and report any instances of repurposing or modifications. This comes after reports indicated a rise in the smuggling of chips, including those produced by Nvidia, into China despite stringent export regulations.
The Secretary of Commerce is also tasked with assessing security measures to avert the misuse of chips and is provided with enforcement capabilities.
This bill was presented by Representatives Bill Foster (D-Ill.), Bill Huizenga (R-Mich.), House Speaker John Mourner (R-Mich.), and ranking member Raja Krishnamoorthi (D-Ill.).
“As a chip designer, AI programmer, and physicist, I understand the technical measures needed to keep advanced AI technology away from dangerous hands,” Foster remarked on Thursday.
This announcement follows a similar proposal by Senator Tom Cotton (R-Ark.) last week in the Senate.
Earlier this week, the Commerce Department officially rolled back the AI proliferation regulations set during the Biden administration, which aimed to impose limits on chip sales worldwide.
The Bureau of Industry and Security expressed that the previous regulations hindered innovation in the U.S. and imposed excessive regulatory burdens on businesses.
The BIS has announced plans to introduce new exchange guidelines in the future.
Several technology firms, including Microsoft and Nvidia, have advised former President Trump to ease regulatory constraints once he is back in office.
Concerns regarding China’s AI advancements intensified earlier this year, particularly after the Chinese AI company Deepseek released high-performance models that competed with some American-made counterparts.
