This bill prohibits the Secretary of Defense from entering into, renewing, or extending contracts for software source code with entities that have specific relationships with China or other "covered countries." The prohibition applies to persons meeting any of the following criteria: They own, operate, substantially fund, or have a material interest in an artificial intelligence research or development facility located in a covered country. They have allowed a covered country to access the software or its source code in a manner that could enable reverse engineering. They operate a data center in a covered country related to the software source code, including through a parent, subsidiary, affiliate, or on behalf of the covered country. The Secretary of Defense retains the authority to waive this prohibition if such a waiver is determined to be in the national security interests of the United States. This restriction will apply to contracts initiated, renewed, or extended within three years following the bill's enactment.