OpenAI and Google are providing advanced AI models to Singapore-based subsidiaries of Alibaba, Baidu, and Tencent. The Pentagon currently lists these Chinese parent companies as firms with alleged links to China’s military.
U.S. export controls block access from mainland China but do not broadly prohibit AI services for overseas subsidiaries. This regulatory loophole allows Beijing to access advanced American technology despite Washington’s restrictive efforts.
The revelations have prompted calls for stricter AI software regulations similar to existing semiconductor export bans. OpenAI recently suspended one Alibaba-affiliated user following concerns over model misuse.