The United States is pushing for cloud services providers like Amazon.com and Microsoft to actively investigate and expose foreign clients engaged in developing artificial intelligence (AI) applications on their platforms, intensifying the technological rivalry between Washington and Beijing.
Under the Biden administration’s forthcoming proposal, these companies would be mandated to disclose the identities and IP addresses of their foreign customers. This initiative would necessitate Amazon, Google (a subsidiary of Alphabet), and others to allocate resources for gathering such information and to report any suspicious activities, as outlined in a draft rule released on Sunday.
If enforced, these measures could serve as a means for the U.S. to restrict Chinese companies’ access to the essential data centers and servers crucial for AI application training and hosting.
Furthermore, this places the responsibility of collecting, storing, and analyzing customer data on the cloud services providers, akin to the stringent “know-your-customer” regulations prevalent in the financial sector. Concerns have been raised by U.S. cloud providers regarding the potential disadvantage American firms might face if restrictions are imposed on their interactions with international users without equivalent measures by allied nations.
As of now, representatives from Microsoft, Amazon, and Google have not provided comments outside regular U.S. hours. The Commerce Department directed inquiries to Commerce Secretary Gina Raimondo’s previous statements.
Raimondo emphasized last week that her team is actively addressing national security risks associated with AI development, particularly focusing on companies from China. In addition to efforts to limit Beijing’s access to advanced semiconductors, Washington aims to curtail Chinese firms’ ability to develop AI technologies with potential military applications.
President Joe Biden instructed the Commerce Department in October to mandate such disclosures to identify foreign entities that might leverage AI for malicious cyber activities.
The Commerce Department has opened the proposed rule for public comments until April 29 before finalizing the regulation.
In terms of China’s AI capabilities compared to ChatGPT, the Commerce Department noted the possibility of exceptions to the identification rules for foreign branches of U.S. cloud providers. There have been suggestions to broaden the definition of U.S. cloud services, including deliberations on whether foreign subsidiaries should be encompassed by the regulations.
The administration views China’s advancements in AI and other cutting-edge technologies as a significant challenge, considering Beijing as its primary global strategic rival. Despite U.S. efforts to restrict chip exports and impose sanctions on Chinese companies, China’s tech sector has continued to achieve notable progress.
In October, the U.S. enhanced its controls to cover a wider range of chips, equipment, and regions. Notably, one key revision targeted Chinese companies operating in over 40 countries, aiming to prevent these entities from utilizing intermediaries in other nations to access semiconductors that are restricted domestically.
