U.S. Proposes 'Know Your Customer' Regulation for Cloud Companies

The move aims to prevent foreign entities, particularly from China, from using U.S. cloud computing for AI model training.

The U.S. government is proposing a 'know your customer' regulation for cloud companies to prevent foreign entities, particularly from China, from using U.S. cloud computing for AI model training.
The proposed regulation requires U.S. cloud companies to identify their foreign users rigorously, preventing entities from countries like China from accessing U.S. cloud resources for artificial intelligence development.
Cloud computing firms will have to verify foreign customers' identity, maintain user identification standards, and certify their compliance annually.
The initiative is part of a larger strategy to ensure that U.S. cloud platforms are not exploited for potentially hostile AI development.
Industry responses to these measures have not been positive, with criticism that it could deter international collaboration in AI.