AI cloud services evading US chip export regulations, claims study

AI applications, unrefined algorithms, and non-military data sets are considered beyond the scope of these regulations.

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US chip export control rules circumvented by AI cloud services, says report

AI applications, unrefined algorithms, and non-military data sets are considered beyond the scope of these regulations.

The regulations, enforced by the US Department of Commerce’s Bureau of Industry and Security (BIS), additionally prohibit the export of equipment for semiconductor manufacturing to restricted nations such as Russia, North Korea, and China.

Loophole in cloud computing

Yet, the current regulations do not address the provision of chip-as-a-service, or cloud computing, which creates a potential opportunity for Chinese businesses to leverage these chips as long as they remain within US borders.

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