Cloud bill targets China AI loophole
Washington, June 26
Two bipartisan U.S. lawmakers on Friday introduced legislation aimed at closing what they described as a major loophole in export controls that could allow China and other U.S. adversaries to access advanced American artificial intelligence computing power through cloud service providers.
Congressman Josh Gottheimer and Congressman John Moolenaar, Chairman of the House Select Committee on China, unveiled the Cloud Security Act, arguing that existing U.S. export controls restrict the sale of advanced AI chips but do not adequately address the growing use of cloud computing services that provide remote access to those same chips.
The lawmakers said the legislation is designed to prevent foreign adversaries from bypassing export restrictions by renting computing power from U.S.-based cloud providers instead of purchasing restricted semiconductor hardware.
"We can't let our adversaries - especially China - dodge our export controls by simply renting what they can't buy," Gottheimer said.
"This bill gives American companies the legal clarity they need to do the right thing and report when bad actors are trying to use our own cloud infrastructure to threaten our national security," he added.
According to the lawmakers, U.S. export controls currently restrict the sale of advanced AI chips used to train cutting-edge artificial intelligence models to countries and entities of concern. However, customers can still rent access to those chips through cloud computing platforms without taking ownership of the hardware.
The legislation seeks to address that gap by amending existing law to allow cloud computing providers to voluntarily report to the Department of Commerce suspected misuse of their services by customers associated with U.S. adversaries.
The existing law prevents companies from disclosing customer content or records to the government, creating legal uncertainty for firms that believe foreign adversaries may be exploiting their platforms, the lawmakers noted.
Moolenaar said China was actively seeking alternative routes to obtain advanced computing capabilities.
"In the AI race, China will buy what it can and steal the rest, which is why it is actively trying to get backdoor access to U.S. data centres and train its AI models via cloud computing," he said.
"U.S. cloud platforms have a role to play in stopping China's AI buildup, which fuels its military and surveillance ambitions. This bipartisan commonsense legislation will require them to protect their products and American national security by simply verifying the identity of their users," Moolenaar added.
The lawmakers said the bill focuses on cloud computing services offered by major American providers, where customers can rent processing capacity powered by advanced AI chips. They argued that without additional safeguards, export controls on physical chip sales alone leave a significant enforcement gap.
— IANS
Reader Comments
As someone who works in tech, this is tricky. On one hand, we need security. On the other, how do you verify who's using cloud services? Chinese companies could easily set up shell companies in Singapore or India. The US needs to work with allies like India on this, not just act unilaterally.
Main point is correct - China will try any backdoor. But this is also an opportunity for Indian cloud providers like Jio, Airtel, and Yotta. We have a massive data center buildout happening in India. Instead of US cloud, China will come to India for services, and we need strict safeguards. Make in India for the world!
The irony is that the same US companies complaining about China are the ones who spent years building factories and data centers there. You can't have it both ways. Either you control the technology or you don't. This bill feels like a half-measure.
Good move by US lawmakers but they should also check how their own companies are happily selling to China via other routes. India should take note - we need our own AI chips and cloud infrastructure. Nvidia is selling to us too, but at what cost? Atmanirbhar Bharat in tech is the only way forward.
This is basically trying to close the barn door after the horse has bolted. China has been using cloud services for years. And the compliance burden on US cloud providers will be huge. But I guess something is better than nothing.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.