{"abstract":"OpenAI (OPENAI) and Alphabet's (GOOGL) Google have been selling access to AI models to Singapore units of Alibaba (BABA), Baidu (BIDU) and Tencent (TCEHY) despite their parent companies being designated by the Pentagon as Chinese military-linked firms, the Financial Times reported. The sales are legal under current U.S. regulations because the Pent...","title":"OpenAI, Google sold AI model access to China-linked blacklisted group - report","sourceHref":"https://seekingalpha.com/news/4612802-openai-google-sold-ai-model-access-to-china-linked-blacklisted-group---report?utm_source=msn.com&utm_medium=referral&feed_item_type=news&fr=1","renderingRestriction":0,"authors":[],"imageResources":[{"width":1536,"height":1024,"quality":42,"url":"https://img-s-msn-com.akamaized.net/tenant/amp/entityid/BB1lU2F1.img","attribution":"Provided by Seeking Alpha","title":"Accenture, Oracle join hands to help clients accelerate generative AI adoption","caption":"OpenAI, Google sold AI model access to China-linked blacklisted group - report","source":"msn","cmsId":"cms/api/amp/image/BB1lU2F1"}],"body":"

OpenAI (OPENAI) and Alphabet's (GOOGL) Google have been selling access to AI models to Singapore units of Alibaba (BABA), Baidu (BIDU) and Tencent (TCEHY) despite their parent companies being designated by the Pentagon as Chinese military-linked firms, the Financial Times reported.

The sales are legal under current U.S. regulations because the Pentagon's list does not prohibit U.S. companies from providing AI services to the designated firms. However, the arrangements have drawn scrutiny from U.S. lawmakers and policy experts, who argue export controls on AI models have not kept pace with restrictions on advanced AI chips.

OpenAI (OPENAI) has recently suspended some Alibaba-linked accounts over suspected \"distillation,\" a process in which outputs from frontier AI models are used to train competing models, the report said.

While Google (GOOG) acknowledged that geographic restrictions alone are insufficient to prevent unauthorized copying or extraction of model capabilities, highlighting the technical challenges of controlling access to advanced AI.

The report contrasted the approaches of major AI developers, noting that Anthropic (ANTHRO) has adopted a stricter policy by blocking access from Chinese entities and closing loopholes that previously allowed access through overseas affiliates and cloud providers. Anthropic (ANTHRO) has accused Alibaba (BABA) of using thousands of fraudulent accounts to collect data from its Claude models.

More on OpenAI, Alphabet

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