AI Sovereignty Act

Federal review of offshore AI development

This bill would require the Commerce Department to deliver an initial report within 240 days on where key AI work is done offshore and which partnerships move it there or bring it back. It would also list the roles of foreign nationals educated or working in the U.S., roles of U.S. officials working for foreign entities, and U.S. assets and IP bought by foreign entities, including in bankruptcy or distressed sales. The report would assess effects on the U.S. economy, national security, allies, and adversaries like DPRK, Iran, China (PRC), and Russia, and on vulnerable markets like Taiwan. It would track trends for at least 30 years and compare how countries use large language models and research platforms. Based on findings, Commerce would propose strategies to discourage offshoring, boost U.S. AI R&D, and tighten oversight of such acquisitions; the report would go to Congress and be published in the Federal Register. The report could not include personal identifying information, and Commerce would consult other agencies. Commerce would review the strategies every year and publish updates if they become outdated. For this section, “critical AI technologies” would include AI hardware, software, and data models (like high‑performance chips and software frameworks), and a “foreign entity” would mean a company formed under foreign law or with its main office outside the U.S.