TL;DR:
- US Commerce Secretary Gina Raimondo seeks disclosure from cloud companies regarding foreign use of their computing power for AI applications.
- The move is part of the ongoing technology rivalry between the US and China.
- President Joe Biden’s directive aims to detect foreign actors using AI for cyber threats.
- Concerns revolve around Chinese companies accessing computing power via cloud providers.
- The US tightens restrictions on semiconductors, expanding control over chip exports.
- Regulatory challenges emerge as cloud services don’t fit traditional export control frameworks.
- US cloud providers worry about competitive disadvantages without international alignment.
- The Commerce Department plans to survey companies developing Large Language Models (LLMs) on safety tests.
- A separate antitrust inquiry into AI partnerships is underway by the Federal Trade Commission.
Main AI News:
In a strategic move that continues to define the ongoing tech battle between the United States and China, United States Commerce Secretary Gina Raimondo has declared her department’s intention to compel cloud companies to divulge instances of foreign entities harnessing their computing capabilities to drive artificial intelligence (AI) applications. This bold step comes as Washington seeks to bolster its defenses against potential malicious cyber-enabled activities and maintain control over the burgeoning AI landscape.
“We’re embarking on the journey of mandating US-based cloud companies to furnish us with information each time a non-US entity leverages their cloud infrastructure to train a Large Language Model (LLM),” stated Raimondo during a recent event. These LLMs, integral to the operation of AI tools like ChatGPT, are at the forefront of technological advancement.
President Joe Biden issued a directive in October, directing the agency to enforce these disclosures as a preventive measure against foreign actors who may exploit AI for nefarious purposes. This move marks a pivotal phase in the ongoing technological tussle between the two global giants.
The Commerce Department has also been exploring avenues to regulate the cloud industry through export controls, following sweeping restrictions that have curtailed China’s access to cutting-edge semiconductors. The concern in Washington lies in the ability of Chinese companies to gain access to the same computing power as these semiconductors through cloud service providers such as Amazon Web Services, Microsoft Corp’s Azure, and Alphabet’s Google Cloud.
“Our objective is to close off any potential avenues through which the Chinese could access our models or train their own,” emphasized Raimondo in a recent interview. The Biden administration views China’s progress in AI and next-generation technologies as a paramount concern, considering Beijing its primary global strategic rival.
In its pursuit to rein in China’s technological advancements, the US has previously imposed restrictions on chip exports to the country and has sanctioned individual Chinese firms. Despite these measures, Chinese tech giants have made significant strides.
In October, the US further tightened its controls, expanding its reach to cover more chips, semiconductor manufacturing equipment, and additional geographies. Notably, one key update targeted Chinese-headquartered companies operating in over 40 countries, aiming to curtail their use of intermediaries to secure semiconductors.
However, the challenge remains in addressing how Chinese firms tap into the capabilities of these chips through cloud services. The nature of cloud services, which does not involve the transfer of physical goods, has posed a conundrum for regulators. The Commerce Department has explicitly stated that cloud services fall outside the purview of export controls.
Thea Kendler, assistant secretary for export administration, has acknowledged the need for potential additional authority in this domain. US cloud providers have voiced concerns that stringent restrictions on their interactions with foreign users, without corresponding measures from allied nations, may place American firms at a disadvantage.
In addition to these developments, the Commerce Department has announced plans to survey companies developing LLMs about the outcomes of their safety tests, although specific details regarding the survey remain undisclosed.
Conclusion:
The US’s efforts to compel cloud companies to disclose foreign AI usage indicate its determination to safeguard its technological edge and national security. This move may lead to increased scrutiny and potential challenges for the global cloud market, particularly for US-based providers dealing with overseas customers. It underscores the ongoing tech rivalry between the US and China and the broader implications for the AI and cloud industries.
