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Major Developments in China and the U.S. Uncovered: Chinese AI Engineers Exploit Advanced U.S. Chips in SecretA recent report by the Wall Street Journal on Monday (August 26) reveals that Chinese artificial intelligence (AI) developers have devised a covert method to access cutting-edge American chips without physically bringing them into China.
According to the report, these developers collaborate with intermediaries to acquire overseas computing power, often utilizing techniques from the cryptocurrency realm to obscure their identities.This maneuver is a strategic response to stringent U.S. export controls, which block Chinese firms from directly purchasing AI chips, like Nvidia's advanced models, from the U.S.
Within three weeks, these servers began processing AI algorithms for a Beijing-based firm. Aw succinctly captures the situation: "Where there’s demand and profit, there’s always a supplier."While renting remote computing power is a standard practice, often facilitated by global giants like Google Cloud, Microsoft Azure, and Amazon AWS, these companies enforce strict "know your customer" (KYC) policies. Such policies may complicate access for some Chinese clients seeking state-of-the-art computing capabilities.
However, the Wall Street Journal notes that despite U.S. sanctions, the transactions involving computing power, facilitated by middlemen, have not breached any laws.
The platforms in question employ blockchain technology for contract management and payments, allowing users to maintain anonymity, often transacting through subsidiaries in regions like Singapore.
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