Chinese state-affiliated entities are using cloud services to access US-banned AI chips, revealing loopholes in current regulations and escalating the global AI race.
Recent reports have uncovered that Chinese state-linked organizations are using cloud services, such as those provided by Amazon, to access high-level AI chips and capabilities that are banned by the United States. This development underscores the intensifying global competition in artificial intelligence, where the US has sought to prevent China from advancing by restricting access to American-made technology.
A recent investigation revealed that at least 11 Chinese entities have utilized cloud services from Amazon or similar providers to obtain access to restricted semiconductor chips and AI capabilities. Notably, these entities often access these services through intermediaries rather than directly from the cloud service providers.
One case involved Zhejiang Lab, a research institute working on a large language model called GeoGPT, which allocated approximately 184,000 yuan ($25,783 USD) to procure cloud computing services from Amazon Web Services (AWS). Another instance detailed Shenzhen University’s expenditure of 200,000 yuan ($27,996 USD) on an AWS account to utilize servers powered by Nvidia A100 and H100 chips.
Despite the US embargo on advanced semiconductor technology, the Chinese chip market has been maneuvering around these restrictions by relying on domestic chip makers and acquiring specialized products from global leaders like Nvidia. These Nvidia chips, particularly the A100 and H100 models, have been central to the US’s export restrictions aimed at curtailing China’s AI advancements. However, reports from April 2024 indicated that China has been accessing these chips through servers provided by companies like Supermicro and Dell.
While these findings highlight China’s ability to circumvent US regulations, they do not represent a direct violation of current US laws, which focus on the export or transfer of the technology itself rather than access via cloud services. The US government, aware of these loopholes, is considering further tightening restrictions to close these gaps.
Microsoft’s cloud services have also been targeted, with Sichuan University purchasing significant quantities of Microsoft Azure OpenAI tokens to support its generative AI platform development.
China has historically responded to US technology restrictions by imposing its own controls, including on critical metals used in semiconductor manufacturing, further complicating the global tech landscape.
