If enacted, the U.S. government could use these requirements to cut off key routes for Chinese companies to access data centers and servers critical to training and hosting AI applications.
They are also charged with the responsibility of collecting, storing, and analyzing customer data on cloud services, a burden similar to the strict “know-your-customer” rules that govern the financial industry. U.S. cloud providers are concerned that restrictions on their activities with overseas users without comparable measures by allies risk putting U.S. companies at a disadvantage.
Fintech giant Ant Group establishes AI division led by former Google researcher
Fintech giant Ant Group establishes AI division led by former Google researcher
Representatives for Microsoft, Amazon and Google did not immediately respond to requests for comment outside of normal U.S. business hours. A Commerce Department representative referred to Bloomberg’s comments last week from Secretary of Commerce Gina Raimondo.
Raimondo said Friday that her team is working to eradicate national security threats posed by AI development, and that effort will likely focus on Chinese companies. The US government is already working to limit China’s access to cutting-edge semiconductors and wants to limit Chinese companies’ ability to develop AI with potential military capabilities.
“It’s very dangerous for these models to fall into the hands of non-state actors and people who are not allies,” Raimondo said in Washington.
President Joe Biden in October would require such disclosures to detect foreign actors that may use AI to launch what the proposal calls “malicious cyber-enabled activities.” The Ministry of Commerce was instructed to do so.
The United States is seeking comments on the proposed rule through April 29 before finalizing the regulation.
The Commerce Department said it may create an exception to the background check rules for foreign subsidiaries of U.S. cloud providers. It also noted previous commenters who have called for the broadest possible definition of U.S. cloud services, adding that it would clarify whether foreign subsidiaries fall under the rule.
China’s development of AI and other next-generation technologies is a top concern for the regime, which views Beijing as a major global strategic competitor.
The US government has sought to curb China’s progress by restricting chip exports to the country and sanctioning individual Chinese companies, but the country’s high-tech leaders have managed to make significant progress despite US restraint. I have accomplished it.
The US tightened controls in October to capture more chips, equipment and territory. One of the key updates targets China-based companies with operations in more than 40 countries that use other countries as intermediaries to secure semiconductors they don’t have access to in their own countries. It is an attempt to prevent this.