U.S. Commerce Secretary Gina Raimondo is introducing a proposal this week that would block the U.S. government from using cloud computing from foreign companies, particularly China, for AI model training, Reuters reported. The Biden administration sees this as an effort to protect national security and U.S. technological superiority. Meanwhile, Chinese companies can continue to access services deployed in Europe and the Middle East.
“You can't involve non-state actors or China or people who don't want access to the cloud to train models,” Raimondo said. Reuters. “We have export controls on chips,” she said. “Since those chips are in American cloud data centers, we also have to think about blocking the path to potential malicious activity.”
A key aspect of the initiative is called “Know Your Customer,” which requires U.S. cloud companies to precisely identify foreign users. The regulation would prevent companies from countries such as China from accessing U.S. cloud resources for artificial intelligence development. Raimondo compared this to existing export controls on high-performance AI processors (such as Nvidia's H100) and the need to cut off potential avenues for malicious activity using American technology on U.S. soil. is emphasized. The initiative grew out of an October proposal to block Chinese companies' access to U.S.-based cloud technology.
The proposed regulations impose significant responsibilities on cloud computing companies. These companies must verify the identity of foreign customers, maintain user identification standards, and certify compliance annually. This rule is part of a larger strategy to ensure that U.S. cloud platforms are not exploited for potentially hostile AI development. China, on the other hand, sees this as a way to curb economic development.
In part, U.S. regulation of certain entities accessing U.S. clouds is already in place. In October, President Joe Biden announced that developers of AI systems that could pose a threat to U.S. national security, economy, public health, or safety would be required to undergo safety testing before making these systems available to the public. Enacted an executive order requiring the results to be disclosed to the U.S. government. public.
The industry's response to these measures, at least in the public eye, has not been positive. Carl Szabo, general counsel for tech industry trade group NetChoice, criticized the executive order's implementation as potentially illegal and could hinder international cooperation in the field of AI.
