Chinese AI Groups Use Cloud Services To Evade US Chip Export Controls

Chinese artificial intelligence groups are skirting export controls to access high-end US chips through intermediaries, revealing potential loopholes in Washington's blockade of cutting-edge technology to the country. From a report: AI surveillance groups targeted by US sanctions have found ways to obtain restricted technology by using cloud providers and rental arrangements with third parties, as well as purchasing the chips through subsidiary companies in China. iFlytek, a state-backed voice recognition company blacklisted by Washington in 2019, has been renting access to Nvidia's A100 chips, which are critical in the race to develop groundbreaking AI applications and services, according to two staffers with direct knowledge of the matter. Facial recognition group SenseTime, sanctioned at the same time as iFlytek, has used intermediaries to purchase banned components from the US, according to three senior employees familiar with the situation. Privately controlled cloud computing companies also provide access to high-end US chips. AI-Galaxy, a Shanghai-based cloud computing company founded by former employees from Nvidia and AliCloud, charges $10 for one-hour access to eight of its A100 Nvidia chips. The ability of Chinese AI groups to continue accessing Nvidia's crucial high-end chips and other cutting-edge technology underlines the challenge the US faces in enforcing its trade restrictions against Chinese companies.

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