January 28, 2024 The U.S. government is intensifying its stance in the ongoing technological rivalry with China, particularly in the realm of artificial intelligence (AI) development. U.S. Commerce Secretary Gina Raimondo recently announced a new initiative aimed at restricting foreign entities, especially those from China, from utilizing U.S. cloud computing resources for AI model training.

This proposal, seen as an extension of the existing export controls on high-performance AI processors, requires American cloud companies to implement stringent measures to identify their foreign users. The primary objective is to prevent entities from nations like China from accessing American cloud resources for AI development. This move aligns with the Biden administration’s broader strategy to ensure that U.S. cloud platforms are not exploited for AI development that could be potentially hostile.

Under this new regulation, cloud computing firms face significant responsibilities. They are mandated to verify the identity of foreign customers, uphold strict user identification standards, and certify their compliance on an annual basis. Despite these restrictions, Chinese entities may still be able to access similar services offered in regions like Europe and the Middle East.

The response from the industry to these measures has been varied, with some voices expressing concern over the potential negative impact on international AI collaboration. Carl Szabo, general counsel at NetChoice, a tech industry trade group, has criticized the executive order’s implementation, questioning its legality.

Despite these criticisms, it appears that the U.S. is determined to maintain this strategy as part of its efforts to control the use of its technology in AI development, particularly in the context of the competitive landscape with China.

Sources include: Tom’s Hardware