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How U.S. Cloud Service Restrictions Could Hurt Chinese Companies
The Curious Case of Cloud Computing Restrictions In early July this year, rumors circulated amongst the American media that the government sought to limit Chinese companies from harnessing U.S. cloud services. Furthermore, U.S. companies would require government approval before providing cloud services to Chinese clients. This proposed constraint stems from the administration’s apprehension that Chinese corporations, especially those specializing in artificial intelligence, could obtain the formidable computing power of cutting-edge chips by utilizing the cloud services of American tech giants. Thus, they could legally skirt existing prohibitions and train various AI models with U.S. technology. Compared to the contention over semiconductors and generative AI, cloud services may seem innocuous. However,…