Chinese Entities Leverage U.S. Cloud Services for Restricted AI Capabilities

State-linked Chinese entities are accessing advanced U.S. chips and AI capabilities through cloud services provided by companies like Amazon Web Services (AWS). Despite U.S. regulations restricting the export of such technologies, these entities utilize intermediaries to legally procure cloud-based services. The U.S. government is planning tighter regulations to close this loophole.

State-linked Chinese entities are harnessing advanced U.S. chips and artificial intelligence through cloud services offered by Amazon Web Services (AWS) and its competitors, recent public tender documents reveal.

Despite U.S. export restrictions on high-end AI technologies to China over the past two years, these entities have managed to access them legally via cloud services. The loophole allows the provision of such capabilities without violating current U.S. regulations, as they do not involve actual exports.

A review of over 50 public tender documents showed at least 11 Chinese entities seeking access to restricted U.S. technologies. AWS was explicitly named by four entities, accessed through local intermediaries. Chinese entities' demand for computing power has created opportunities for U.S. businesses, although legislation is underway to tighten the regulations governing remote access to advanced AI technologies.

(With inputs from agencies.)