Biden has long been suspicious of China’s tech companies. But now he’s turning his attention to US companies that export AI and cloud tech to China.
The proposal will also affect US cloud computing companies who allow Chinese companies to use AI. If the plan goes ahead, US companies will need a licence to supply China.
Biden To Cost Oracle Millions?
The effect of this legislation might not be very significant since Chinese companies tend to use Chinese cloud providers. But US-based Oracle might be in trouble, as a provider for TikTok. The government is also looking to restrict China’s use of Microsoft and Amazon.
Oracle hasn’t said how much money they make from TikTok but it’s presumably a pretty big account. However, the majority of its $50bn revenue in 2023 came from selling software, which won’t be affected if they were to lose TikTok’s business.
They’ve been partnering with Nvidia on a cloud AI supercomputing service. It’s thought that they’re spending millions growing this technology. It doesn’t seem like Oracle has much to worry about. The company is expanding and positioning itself at the forefront of huge changes in the industry.
Summary
In theory, Chinese tech companies could be called upon by Beijing to hand over private records. The US government is concerned that China’s use of US AI and cloud tech could compromise user privacy along with risking US government security. Do you think this is a legitimate concern?
Read more about this story here: Chinese Cloud Companies Scrutinised By US Government
