This bill would require the Secretary of Commerce, working with the Director of National Intelligence, to create a yearly process to set export limits for certain AI chips and related hardware. The agencies must publish objective metrics within 180 days to measure AI hardware capability and supply. Metrics must include things like total processing power, interconnect bandwidth, and memory bandwidth. After each metrics update, the agencies must report to specified congressional committees within 90 days on the amount and location of AI hardware for each country of concern.
Using those assessments, the Secretary must set an annual upper limit on exports to any "entity of concern." The upper limit for an item cannot exceed 110 percent of the performance of the most capable item that meets an "indigenous production" threshold. An item counts as indigenous only if it is designed by an entity of concern and is fabricated within the territory of the People's Republic of China, and only if it is in sustained serial production sufficient to meet at least 25 percent of the estimated annual demand among entities of concern. If no item meets that production threshold, the default is a policy of denial for exports or remote access.
The Secretary must also require licenses for exports or remote access and must presume denial of licenses if approval would allow adversary AI hardware to exceed 5 percent of the total AI hardware physically present and intended for use in the United States. Some licenses may be reviewed without the presumption of denial only if applicants provide specific certifications, including that U.S. customers will not face delays, exported hardware will not exceed 50 percent of like shipments to U.S. customers, items are not for military or weapons uses, shipments are checked by an independent U.S. testing lab, and cloud or infrastructure providers will restrict transfers of trained model weights.
The Secretary may change the metrics starting 24 months after the first assessment but must notify congressional committees 90 days before changes and justify them. Committees can block metric changes by written objection. The bill defines "AI hardware," "entity of concern," and lists countries of concern (including the People's Republic of China, Cuba, Iran, North Korea, and Russia) and allows additions based on existing Export Administration Regulations or State Department designation. The bill also states that it does not direct the Secretary to loosen controls or to approve licenses.
No publicly available information on federal costs or budgetary effects is included in the bill text. The bill requires agency work (metric development, assessments, reporting, licensing) but does not provide cost estimates or funding details.
The bill states its policy goals as: lead global diffusion of U.S. AI hardware and software; shape markets so foreign adversaries remain reliant on U.S. and allied supply chains; pursue export promotion and export control measures that sustain U.S. leadership in advanced AI; ensure allied coordination to avoid backfill; limit adversary ability to indigenize AI hardware production; provide business stability through a repeatable annual process; and prevent a foreign adversary from approaching parity with U.S. aggregate AI hardware capacity.
No publicly available information on opponents' views or formal objections is included in the bill text or metadata.