This move is seen as an effort to safeguard national security and maintain U.S. technological superiority. However, the regulation has been met with criticism from the tech industry, with some arguing that it could deter international collaboration in AI. Meanwhile, China views these regulations as an attempt to curb its economic development. Despite this, Chinese entities can still access services deployed in Europe and the Middle East.
Key takeaways:
- The U.S. government is proposing a regulation to prevent foreign entities, particularly from China, from using U.S. cloud computing for AI model training, as announced by U.S. Commerce Secretary Gina Raimondo.
- The initiative, known as 'Know Your Customer,' requires U.S. cloud companies to rigorously identify their foreign users and is aimed at safeguarding national security and the U.S. technological superiority.
- The proposed regulation imposes significant responsibilities on cloud computing firms, including verifying foreign customers’ identity, maintaining user identification standards, and certifying their compliance annually.
- Industry responses to these measures have been largely negative, with concerns raised about potential illegality and the potential to deter international collaboration in AI.