Overview

• 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.