Coca-Cola’s Costa Coffee Sale Faces Uncertainty as Talks With TDR Capital Hit Snag 
SpaceX Edges Toward Landmark IPO as Elon Musk Confirms Plans 
Trello Outage Disrupts Users as Access Issues Hit Atlassian’s Work Management Platform 
SoftBank Eyes Switch Inc as It Pushes Deeper Into AI Data Center Expansion 
Australia Enforces World-First Social Media Age Limit as Global Regulation Looms 
China Adds Domestic AI Chips to Government Procurement List as U.S. Considers Easing Nvidia Export Curbs 
Trump Signs Executive Order to Establish National AI Regulation Standard 
Nvidia Develops New Location-Verification Technology for AI Chips 
EU Court Cuts Intel Antitrust Fine to €237 Million Amid Long-Running AMD Dispute 
Trump Criticizes EU’s €120 Million Fine on Elon Musk’s X Platform 
ADB Approves $400 Million Loan to Boost Ease of Doing Business in the Philippines 
Westpac Director Peter Nash Avoids Major Investor Backlash Amid ASX Scrutiny 
EssilorLuxottica Bets on AI-Powered Smart Glasses as Competition Intensifies 
Gulf Sovereign Funds Unite in Paramount–Skydance Bid for Warner Bros Discovery 
Mizuho Raises Broadcom Price Target to $450 on Surging AI Chip Demand 
The United States is ramping up its efforts to closely monitor and expose foreign clients using cloud service providers like Amazon, Google, and Microsoft to develop artificial intelligence (AI) applications. This latest move is part of an ongoing technology conflict between Washington and Beijing.
The Proposed Regulations and their Implications
In a proposal released on January 29, Bloomberg reported that the Biden administration called for cloud service providers to disclose their foreign customers' names and IP addresses. The draft rule, published on January 28, also requires companies like Amazon, Google, and others in the industry to allocate resources for collecting and reporting suspicious activities.
Implementing these stringent regulations could have significant consequences, as it could hinder Chinese firms' access to data centers and servers crucial for training and hosting AI models. Additionally, the burden of collecting, storing, and analyzing customer data would lie upon the cloud services providers, similar to the strict know-your-customer rules in the financial industry.
According to The Straits Times, US cloud providers have expressed concerns over potential restrictions on their overseas activities, mainly if allied countries do not adopt similar measures. This discrepancy could put American firms at a disadvantage in the global market.
Notably, representatives from industry giants like Microsoft, Amazon, and Google have not yet commented on these proposed regulations outside of regular US working hours. The Commerce Department spokesperson referred Bloomberg to Commerce Secretary Gina Raimondo's remarks from last week.
National Security Threats and Focus on Chinese Firms
On January 26, Secretary Raimondo emphasized the urgency of addressing national security threats posed by AI development. This effort is primarily aimed at scrutinizing Chinese companies due to Washington's previous efforts to restrict Beijing's access to advanced semiconductors. The United States aims to curtail Chinese firms' ability to develop AI with potential military applications.
As tensions between the United States and China continue to escalate, the technology sector has become a focal point. The proposed regulations, if enacted, could significantly disrupt the collaboration between Chinese and US tech firms, impacting various industries and innovation.
Photo: Mitchell Luo/Unsplash
