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 Google and Microsoft Offer Nvidia AI Chip to Chinese Customers Through Global Data Centers

Key Points:
1. Access to Nvidia chips: Google and Microsoft are offering Chinese companies access to Nvidia’s advanced AI chips through data centers located outside mainland China.
2. U.S. Restrictions: The Biden administration has implemented measures to limit the use of U.S. technology by Chinese companies, especially in the areas of artificial intelligence and advanced semiconductors.
3. Regulatory compliance: Both companies ensure that their services comply with U.S.-imposed export controls.
4. Regulatory proposals: The U.S. Department of Commerce has proposed that cloud companies should check whether foreign entities use their data centers for training AI models.

 Details of the News

In response to growing security concerns related to China’s use of AI technology, Google and Microsoft have found a way to continue providing advanced AI services to their Chinese customers without violating U.S. restrictions. The cloud divisions of the two companies offer access to Nvidia’s powerful AI chips, including the A100 and H100 models, through data centers located outside mainland China.

These transactions come amid strict measures taken by the Biden administration to prevent advanced U.S. technology, critical to the development of artificial intelligence, from falling into the hands of Chinese companies seen as potentially risky to national security. The U.S. Commerce Department’s proposal, announced in January 2024, suggests requiring cloud companies to monitor whether foreign entities access their data centers for AI training purposes, with the goal of preventing unauthorized use of the technology.

 Specific Offerings and Services

Microsoft is offering Chinese customers the ability to rent servers with Nvidia chips located in international data centers, allowing them to circumvent restrictions imposed by U.S. policies without breaking laws. Similarly, Google allows Chinese customers to use servers located outside mainland China while ensuring compliance with U.S. export controls.

Nvidia, for its part, continues to develop and distribute advanced AI chips, such as the new H100 models, which are key to enhancing AI computing capabilities. These chips are used in a wide range of applications, from image and text generation to video analysis and scientific and industrial applications.

Background and Implications

This approach represents an attempt by large U.S. technology companies to maintain their competitiveness in the global AI market without breaking national regulations. However, the balance between supporting global innovation and protecting national security interests remains delicate and complex.

The continued evolution of regulations and business strategies in response to these geopolitical challenges will be crucial to the future of advanced AI technologies and the U.S. role in the global technology market.