OpenAI Pulls Back From Chip Export Control Push as Congress Weighs China Restrictions

OpenAI Shifts Away From Tighter Chip Controls

OpenAI has stopped pressing for strict limits on the sale of advanced U.S. chips to China, a reversal that benefits Nvidia and aligns with the Trump administration's approach. For much of last year, the AI company had advocated for tighter export controls on processors made by Nvidia and other U.S. chipmakers. Capitol Hill aides and lobbyists with direct knowledge of the company's positioning say OpenAI has stopped pressing for it.

Congress Braces for Lame Duck Fight

The retreat leaves China hawks in Washington without a prominent industry ally as Congress prepares for a lame duck session fight over adding new chip restrictions to the National Defense Authorization Act. Lawmakers had been counting on OpenAI to rally behind the proposals and are now concerned that the company's pullback gives Nvidia an advantage in the behind-the-scenes lobbying campaign to stop the new limits.

Nvidia and other chip giants that export to China argue that the U.S. is better off selling freely around the world so that other countries build their AI on American technology. Anthropic backs several of the chip bills that could be attached to the defense measure and quit a major tech trade association in September over the group's push to reshape the proposals.

Deepening Business Ties With Nvidia

OpenAI is reliant on Nvidia's chips to build and deliver its AI models, and the two companies have deepened their business ties in recent months. Nvidia, the world's most valuable company, finalized a $30 billion equity investment in OpenAI in February ahead of a likely OpenAI IPO. Under a separate deal announced in August, Nvidia agreed to be the exclusive chip supplier at an Ohio data center that OpenAI will lease, and to guarantee up to $105 billion for the facility's first phase.

A Changing Public Position

OpenAI's stance has shifted over time. In March 2025, the company said it supported keeping China under strict export controls and urged the Trump administration to prohibit China from accessing American AI technology. By June 2026, a proposal for a federal AI framework included only a single line calling to strengthen export controls, without singling out China. In an October 2025 letter to the White House, OpenAI asked the administration to loosen export licensing restrictions for AI safety testing.

The White House has made clear it wants U.S. companies to sell more high-tech chips abroad. Trump has reversed limits on sales of some of Nvidia's powerful chips to Chinese companies, in exchange for the chipmaker agreeing to give the U.S. government a significant cut of the revenue. A White House official disputed that the president has eased restrictions on foreign sales of sensitive technology, saying the administration has enforced the most rigorous export control regime in modern history.

Sources: Politico · Techmeme