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AII-1002-42997
Well documentedThree or more independent publishers report the core facts.

Chinese entities access banned US AI chips via cloud services

Chinese entities reportedly used Amazon Web Services and other cloud providers to access U.S. AI chips and advanced AI models banned from direct export to China, circumventing restrictions intended to limit Chinese military capabilities. The arrangement exploits a regulatory gap because cloud access is not classified as export under current U.S. law.

March 2024 Β· Shenzhen University Β· Governance, accountability and labour
March 2024
AII-1002-429975 sources ↓
Quick facts
Category
Governance, accountability and labour
Country
China
Source
timesofindia.indiatimes.com
Date
March 2024
Drafted by
Raidu Incident Detection

What happened

According to Reuters' review of more than 50 tender documents posted on Chinese databases over the past year, at least 11 Chinese entities sought access to restricted U.S. technologies or cloud services, with four explicitly naming Amazon Web Services as a cloud service provider. The entities accessed these services through Chinese intermediary companies rather than directly from AWS.

Shenzhen University spent 200,000 yuan ($27,996) on an AWS account to gain access to cloud servers powered by Nvidia A100 and H100 chips for an unspecified project via intermediary Yunda Technology Ltd Co, according to a March tender document. The U.S. has banned direct exports of these Nvidia chips to China.

Reported impact

The arrangements underscore how U.S. companies are capitalizing on China's growing demand for computing power. AWS also provided access to sophisticated AI models such as Anthropic's Claude, which Chinese entities would not otherwise be able to access.

Index analysis

Providing access to restricted chips or advanced AI models through cloud services is not a violation of U.S. regulations since only exports or transfers of commodities, software or technology are regulated under current rules. The strategy highlights a regulatory loophole that allows Chinese entities to circumvent restrictions intended to limit the Chinese military's technological capabilities.

Governance controls

AWS stated that it "complies with all applicable US laws, including trade laws, regarding the provision of AWS services inside and outside of China." According to reports, new U.S. regulations are being developed to address this loophole.

Classification

Category
Governance, accountability and labour
Industry
IT infrastructure and hosting
Country
China
Harm status
Actual harm
Intent
Intentional
Timing
Unknown
Harm types
Public interest
Harmed
Government
Failure modes
Manipulation or dark pattern
AI systems
Nvidia A100, Nvidia H100, Claude
Regulations
FCRA (cited)

Sources and evidence

This record was researched and written by the Index, based on the following original reporting.

timesofindia.indiatimes.com
Chinese entities access banned US AI chips via cloud services
Yahoo
Factbox-List of Chinese entities who have turned to the cloud for access to restricted US tech
23 August 2024
Economic Times
Chinese entities turn to Amazon cloud and its rivals to access high-end US chips, AI
23 August 2024
Investing.com
Chinese entities using Amazon and rival cloud services to access high-end US chips - Reuters By Investing.com
23 August 2024
TechRadar
Chinese firms are gaining access to top US technology and AI via AWS
23 August 2024
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