Restrictions on AI chip sales to China were left out of final negotiations on the National Defense Authorization Act for fiscal year 2027, according to CNBC. The GAIN AI Act, the AI OVERWATCH Act and the Chip Security Act were all excluded, but the issue could return during legislative discussions in 2027. Existing US rules remain in force: licenses for H200 chips bound for China are handled case by case, while sales of more advanced Blackwell chips generally face a presumption of denial. Nvidia is strengthening compliance with its Southeast Asian distribution partners as investigations into diversion channels toward China continue.
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