Google and OpenAI reportedly provided AI model access to Singapore-based units of Alibaba, Baidu, and Tencent. This development prompted Washington officials to consider stricter export controls on advanced AI software. Current regulations primarily target hardware components like high-end chips.
Alphabet shares dipped in pre-market trading before recovering following the report. Google argued that geographic restrictions cannot fully prevent the extraction of AI model capabilities.
Separately, Google will invest over €1 billion to double its data center capacity in Austria. This investment supports expanding cloud and AI infrastructure across Europe.