US deals another blow to China's AI industry

The Biden administration is preparing to restrict Chinese companies' access to U.S. cloud computing services, a move that could further strain relations between the world's economic superpowers, the Wall Street Journal reported.

The new rules, if passed, would likely require US companies such as Amazon and Microsoft to seek US government permission to provide cloud computing services using advanced artificial intelligence chips to Chinese customers.

US national security analysts have warned that Chinese AI companies may be evading existing export controls by using cloud services that allow customers to access powerful computing capabilities without having to buy cutting-edge equipment on the restricted list, such as the A100 chip from US tech company Nvidia.

Amazon Web Services and Microsoft Azure are the most widely used cloud computing platforms worldwide. Photo: WSJ

“If a Chinese company wanted to access the Nvidia A100, they could do so from any cloud provider. It’s perfectly legal,” said Emily Weinstein, a researcher at Georgetown University’s Center for Security and Emerging Technology.

According to Ms. Weinstein, the US government may also restrict US cloud companies from providing services to users related to military, security or intelligence services in China and other relevant countries.

The new policy would expand the scope of export controls to a new group of companies beyond semiconductor and equipment makers. Among U.S. cloud platforms, Amazon Web Services and Microsoft Azure are expected to be most affected because of their presence in the Chinese market.

The US Commerce Department is expected to announce the action in the coming weeks as part of an expansion of semiconductor export controls that were introduced in October 2022, according to the WSJ.

At the time, the Biden administration had already announced restrictions to limit exports of chips and advanced equipment, but had not yet codified them in final rules. Final and updated regulations are expected to be issued in the coming weeks, including expanding restrictions on artificial intelligence chips made by Nvidia and other chipmakers. The new cloud computing rule would be part of that effort.

China has banned some companies from buying products from Micron Technology, the largest US memory chip maker. Photo: WSJ

In addition to the export control regime, US officials and lawmakers are also considering taking steps to restrict the operations of Chinese cloud service providers such as Alibaba and Tencent in the US.

A ban on cloud services would be the latest in a series of tit-for-tat actions between Washington and Beijing over semiconductors and other advanced technologies.

Concerned about China’s advances in artificial intelligence technology and its military applications, the Biden administration is stepping up efforts to restrict the transfer of chips and other products and services to Chinese companies.

China has responded, including banning some companies from buying products from Micron, the largest memory chip maker in the United States.

On July 3, Beijing also announced export controls on gallium and germanium along with more than 30 other metals and materials used in the production of advanced chips to protect national security and interests .

Nguyen Tuyet (According to WSJ, Bloomberg)

Source: https://www.nguoiduatin.vn/my-giang-them-don-vao-nganh-cong-nghiep-ai-trung-quoc-a615669.html