China Evades US Chip Ban via Cloud Servers: Report
Submitted by MAGA
Posted 47 days ago
China continues to access high-end AI chips despite US export ban
Chinese firms have found a way to circumvent the US chip export ban, continuing to access Nvidia Inc's advanced artificial intelligence (AI) chips through cloud servers operated by Google and Microsoft.
According to a report by The Information, Microsoft allows its customers in China to use Azure cloud servers based outside of mainland China. Google also permits Chinese customers to use its AI cloud services, stating that it is confident that the arrangement fulfills US export rules.
These cloud servers use Nvidia's A100 and H100, which have been banned by the US Commerce Department from being shipped to China since October 2022.
The report comes after OpenAI, a Microsoft-backed company that owns ChatGPT, strengthened the screening of its customers' locations to ensure that those in mainland China, Hong Kong, and Macau cannot use its AI chatbot via virtual private networks (VPNs).
Despite the ban, Chinese firms have already mastered the core AI technology principles and architecture and launched their own chatbots. Alibaba, Tencent, Baidu, and ByteDance have recently bought more of Nvidia's H20 chips for their chatbots, with Nvidia's sales of H20 chips in China expected to reach one million units, or $12 billion in value, this year.
The US Commerce Department has been preparing to bar US firms from providing cloud services that use advanced AI chips to Chinese customers, aiming to close a loophole that has allowed Chinese firms to bypass the chip export ban.
However, the legislation progress has remained slow, as the matter involves third countries. There are no rules that forbid Chinese firms' overseas units from using US AI cloud services, nor any rules that forbid US firms from offering AI cloud services to Chinese firms in third countries.
US Commerce Secretary Gina Raimondo proposed a new regulation requiring US Infrastructure-as-a-Service (IaaS) providers to verify the identity of their foreign customers and authorize special measures to deter foreign malicious cyber actors' use of American IaaS products.
The proposed "know your customer" regulation is an important measure to prevent China from using US technology to train its own AI models. However, it remains to be seen whether the regulation will be implemented and effectively enforced.
In conclusion, the US chip export ban has not stopped Chinese firms from accessing advanced AI chips, as they have found ways to bypass the ban through cloud servers operated by US tech giants. The US government must take stronger measures to prevent China from using US technology to strengthen its military and develop new technologies to suppress groups like the Uyghurs.
Sources:
rumble.com
theepochtimes.com
asiatimes.com
Chinese firms have found a way to circumvent the US chip export ban, continuing to access Nvidia Inc's advanced artificial intelligence (AI) chips through cloud servers operated by Google and Microsoft.
According to a report by The Information, Microsoft allows its customers in China to use Azure cloud servers based outside of mainland China. Google also permits Chinese customers to use its AI cloud services, stating that it is confident that the arrangement fulfills US export rules.
These cloud servers use Nvidia's A100 and H100, which have been banned by the US Commerce Department from being shipped to China since October 2022.
The report comes after OpenAI, a Microsoft-backed company that owns ChatGPT, strengthened the screening of its customers' locations to ensure that those in mainland China, Hong Kong, and Macau cannot use its AI chatbot via virtual private networks (VPNs).
Despite the ban, Chinese firms have already mastered the core AI technology principles and architecture and launched their own chatbots. Alibaba, Tencent, Baidu, and ByteDance have recently bought more of Nvidia's H20 chips for their chatbots, with Nvidia's sales of H20 chips in China expected to reach one million units, or $12 billion in value, this year.
The US Commerce Department has been preparing to bar US firms from providing cloud services that use advanced AI chips to Chinese customers, aiming to close a loophole that has allowed Chinese firms to bypass the chip export ban.
However, the legislation progress has remained slow, as the matter involves third countries. There are no rules that forbid Chinese firms' overseas units from using US AI cloud services, nor any rules that forbid US firms from offering AI cloud services to Chinese firms in third countries.
US Commerce Secretary Gina Raimondo proposed a new regulation requiring US Infrastructure-as-a-Service (IaaS) providers to verify the identity of their foreign customers and authorize special measures to deter foreign malicious cyber actors' use of American IaaS products.
The proposed "know your customer" regulation is an important measure to prevent China from using US technology to train its own AI models. However, it remains to be seen whether the regulation will be implemented and effectively enforced.
In conclusion, the US chip export ban has not stopped Chinese firms from accessing advanced AI chips, as they have found ways to bypass the ban through cloud servers operated by US tech giants. The US government must take stronger measures to prevent China from using US technology to strengthen its military and develop new technologies to suppress groups like the Uyghurs.
Sources:
rumble.com
theepochtimes.com
asiatimes.com
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