Google, Microsoft offer Nvidia chips to Chinese companies, the Information reports

(Reuters) – Google and Microsoft (NASDAQ:)’s cloud divisions are offering Chinese companies access to Nvidia (NASDAQ:)’s AI chips by providing data center services in locations outside China, the Information reported on Wednesday.

The Biden administration has taken measures to prevent firms in China from using U.S. technology for artificial intelligence, including advanced semiconductors, as the burgeoning sector raises security concerns.

Microsoft, Alphabet (NASDAQ:), Nvidia and the Department of Commerce did not immediately respond to Reuters requests for comment.

The Biden administration has proposed requiring cloud companies to determine whether foreign entities are accessing data centers in the United States to train AI models, U.S. Commerce Secretary Gina Raimondo told Reuters in January.

Microsoft offers server rental services, including those with Nvidia’s A100 and H100 chips, to Chinese customers through data centers outside China, the Information reported, citing an employee of the Windows maker with knowledge of the services and a person directly involved in the sales.

Google lets customers in China use servers based outside of mainland China, and is confident that its offerings comply with U.S. export controls, the publication said, citing a person familiar with the matter.