Day: August 23, 2024

BEIJING/SINGAPORE/NEW YORK — State-linked Chinese entities are using cloud services provided by Amazon or its rivals to access advanced U.S. chips and artificial intelligence capabilities that they cannot acquire otherwise, recent public tender documents showed.

The U.S. government has restricted the export of high-end AI chips to China over the past two years, citing the need to limit the Chinese military’s capabilities.

Providing access to such chips or advanced AI models through the cloud, however, is not a violation of U.S. regulations since only exports or transfers of a commodity, software or technology are regulated.

A Reuters review of more than 50 tender documents posted over the past year on publicly available Chinese databases showed that at least 11 Chinese entities have sought access to restricted U.S. technologies or cloud services.

Among those, four explicitly named Amazon Web Services, or AWS, as a cloud service provider, although they accessed the services through Chinese intermediary companies rather than from AWS directly.

The tender documents, which Reuters is the first to report on, show the breadth of strategies Chinese entities are employing to secure advanced computing power and access generative AI models. They also underscore how U.S. companies are capitalizing on China’s growing demand for computing power.

“AWS complies with all applicable U.S. laws, including trade laws, regarding the provision of AWS services inside and outside of China,” a spokesperson for Amazon’s cloud business said.

AWS controls nearly a third of the global cloud infrastructure market, according to research firm Canalys. In China, AWS is the sixth-largest cloud service provider, according to research firm IDC.

Shenzhen University spent $27,996 (200,000 yuan) on an AWS account to gain access to cloud servers powered by Nvidia A100 and H100 chips for an unspecified project, according to a March tender document. It got this service via an intermediary, Yunda Technology Ltd Co, the document showed.

Exports to China of the two Nvidia chips that are used to power large-language models, or LLM, such as OpenAI’s ChatGPT, are banned by the United States.

Shenzhen University and Yunda Technology did not respond to requests for comment. Nvidia declined to comment on Shenzhen University’s spending or on any of the other Chinese entities’ deals.

Zhejiang Lab, a research institute developing its own LLM, called GeoGPT, said in a tender document in April that it intended to spend 184,000 yuan to purchase AWS cloud computing services as its AI model could not get enough computing power from homegrown Alibaba.

A spokesperson for Zhejiang Lab said that it did not follow through with the purchase but did not respond to questions about the reasoning behind this decision or how it met its LLM’s computing power requirements. Alibaba’s cloud unit, Alicloud, did not respond to a request for comment.

Reuters could not establish whether the purchase went ahead.

Moving to tighten access

The U.S. government is now trying to tighten regulations to restrict access through the cloud.

“This loophole has been a concern of mine for years, and we are long overdue to address it,” Michael McCaul, chair of the U.S. House of Representatives Foreign Affairs Committee, told Reuters in a statement, referring to the remote access of advanced U.S. computing through the cloud by foreign entities.

Legislation was introduced in Congress in April to empower the Commerce Department to regulate remote access of U.S. technology, but it is not clear if and when it will be passed.

A department spokesperson said it was working closely with Congress and “seeking additional resources to strengthen our existing controls that restrict PRC companies from accessing advanced AI chips through remote access to cloud computing capability.”

The Commerce Department also proposed a rule in January that would require U.S. cloud computing services to verify large AI model users and report to regulators when they use U.S. cloud computing services to train large AI models capable of “malicious cyber-enabled activity.”

The rule, which has not been finalized, would also enable the Commerce secretary to impose prohibitions on customers.

“We are aware the Commerce Department is considering new regulations, and we comply with all applicable laws in the countries in which we operate,” the AWS spokesperson said.

Cloud demand in China

The Chinese entities are also seeking access to Microsoft’s cloud services.

In April, Sichuan University said in a tender document it was building a generative AI platform and purchasing 40 million Microsoft Azure OpenAI tokens to support the delivery of this project. The university’s procurement document in May showed that Sichuan Province Xuedong Technology Co Ltd supplied the tokens.

Microsoft did not respond to requests for comment. Sichuan University and Sichuan Province Xuedong Technology did not respond to requests for comment on the purchase.

OpenAI said in a statement that its own services are not supported in China and that Azure OpenAI operates under Microsoft’s policies. It did not comment on the tenders.

The University of Science and Technology of China’s Suzhou Institute of Advanced Research said in a tender document in March that it wanted to rent 500 cloud servers, each powered by eight Nvidia A100 chips, for an unspecified purpose.

The tender was fulfilled by Hefei Advanced Computing Center Operation Management Co Ltd, a procurement document showed in April, but the document did not name the cloud service provider. Reuters could not determine its identity.

The University of Science and Technology of China, or USTC, was added to a U.S. export control list known as the “Entity List” in May for acquiring U.S. technology for quantum computing that could help China’s military, and for involvement in its nuclear program development.

USTC and Hefei Advanced Computing Center did not respond to requests for comment.

Beyond restricted AI chips

Amazon has offered Chinese organizations access not only to advanced AI chips but also to advanced AI models such as Anthropic’s Claude, which they cannot otherwise access, according to public posts, tenders and marketing materials reviewed by Reuters.

“Bedrock provides a selection of leading LLMs, including prominent closed-source models such as Anthropic’s Claude 3,” Chu Ruisong, president of AWS Greater China, told a generative AI-themed conference in Shanghai in May, referring to its cloud platform.

In various Chinese-language posts for AWS developers and clients, Amazon highlighted the opportunity to try out “world-class AI models” and mentioned Chinese gaming firm Source Technology as one of its clients using Claude.

Amazon has dedicated sales teams serving Chinese clients domestically and overseas, according to two former company executives.

After Reuters contacted Amazon for comment, it updated dozens of posts on its Chinese-language channels with a note to say some of its services were not available in its China cloud regions. It also removed several promotional posts, including the one about Source Technology. Amazon did not give a reason for removing the posts and did not answer a Reuters query about that.

“Amazon Bedrock customers are subject to Anthropic’s end user license agreement, which prohibits access to Claude in China both via Amazon’s Bedrock API [application programming interface] and via Anthropic’s own API,” the AWS spokesperson said.

Anthropic said it does not support or allow customers or end-users within China to access Claude.

“However, subsidiaries or product divisions of Chinese-headquartered companies may use Claude if the subsidiary itself is located in a supported region outside of China,” an Anthropic spokesperson said.

Source Technology did not respond to a request for comment.
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Port Sudan — For the second consecutive year Sudan is in the grip of a cholera outbreak that has left at least 28 people dead in the last month as rains fall in areas crammed with those fleeing the country’s 16-month-old war, officials said.

Since July 22, when the current wave began, 658 cases of cholera have been recorded across five states, World Health Organization (WHO) country director Shible Sahbani told Reuters in Port Sudan.

With much of the country’s health infrastructure collapsed or destroyed and staffing thinned by displacement, 4.3% of cases have resulted in deaths, a high rate compared to other outbreaks, Sahbani said.

Some 200,000 are at high risk of falling ill, he said.

The war between the army and the paramilitary Rapid Support Forces (RSF) has created one of the world’s largest humanitarian crises and displaced more than 10 million people inside Sudan and beyond its borders.

The country is dealing with a total of five concurrent disease outbreaks include dengue fever and measles.

The RSF has advanced across swathes of Sudan, where people have been cut off from aid as the army has withheld access and RSF soldiers loot supplies and hospitals. Efforts to deliver aid to the western region of Darfur have been complicated by rains.

International experts have determined that there is a famine in Darfur’s Zamzam camp, an area flooded in the rains and highly susceptible to cholera.

About 12,000 cases and more than 350 deaths were registered in the previous cholera wave between October 2023 and May 2024, health minister Haitham Mohamed Ibrahim said, adding that there had been no major outbreak in the nine years before the war.

The current outbreak is centered in Kassala and Gedaref states, which host 1.2 million displaced people.

In Gedaref, a Reuters reporter filmed pools of water attracting insects and large ponds of stagnant rain water mixing with refuse. A local official said that the vast majority of diseases were caused by insects, poor water quality, and sewage.

Many people fleeing raids by the RSF shelter in crowded, makeshift displacement centers, where lavatories have overflowed as heavier-than-usual rains continue to fall. Cholera is transmitted from food and water contaminated with infected feces and thrives in such conditions.

Sahbani said that states like Khartoum and Gezira, largely controlled by the RSF, had also seen cholera cases, while states in the Kordofan and Darfur regions could likely see outbreaks.

“The challenge is getting supplies to the areas we need them. Due to the rainy season many roads are not usable now, but also there are security constraints and bureaucratic constraints,” he said.

On Friday, he told reporters in a virtual briefing that the International Coordinated Group for vaccine allocation (ICG) had approved delivery of 455,000 cholera vaccine doses to Sudan, some “good news in the middle of this horrible crisis.”

Ibrahim said the army-aligned government had used “unorthodox measures” including air drops to try to get vaccines and supplies into those RSF-controlled areas as well as isolated army-controlled areas.

Both officials emphasized that the need in Sudan far outweighed the aid effort, particularly as the U.N.’s humanitarian appeal for Sudan is only about one-third funded.

 
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BERLIN — The Berlin Zoo announced Friday that longtime resident giant panda Meng Meng has given birth to twins — for a second time.

The cubs were born on Thursday, the zoo said in a statement. They were born only 11 days after ultrasound scans showed that Meng Meng, 11, was pregnant. Their sex has not yet been determined “with certainty.”

“Now it’s time to keep your fingers crossed for the critical first few days,” the zoo said. The cubs are tiny, weighing just 169 grams and 136 grams respectively, and are about 14 centimeters long.

As with other large bears, giant pandas are born deaf, blind and pink. Their black-and-white panda markings only develop later.

“I am relieved that the two were born healthy,” zoo director Andreas Knieriem said. “The little ones make a lively impression and mom Meng Meng takes great care of her offspring.”

The zoo said that giant pandas usually only raise one cub when they give birth to twins, so it will “actively support” Meng Meng’s cub care in cooperation with two experts from China’s Chengdu Research Base of Giant Panda Breeding who are in the German capital.

“With around 20 births a year, they have much more experience and are better able to assess development,” panda curator Florian Sicks said.

The cubs will alternate being with their mother every two to three hours to drink milk and are otherwise being cared for in an incubator donated by a Berlin hospital.

Meng Meng and male panda Jiao Qing arrived in Berlin in 2017. In August 2019, Meng Meng gave birth to male twins Pit and Paule, also known by the Chinese names Meng Xiang and Meng Yuan, the first giant pandas born in Germany.

The twins were a star attraction in Berlin, but they were flown to China in December — a trip that was contractually agreed from the start but delayed by the COVID-19 pandemic. China gifted friendly nations with its unofficial mascot for decades as part of a “panda diplomacy” policy. The country now loans pandas to zoos on commercial terms.

Giant pandas have difficulty breeding and births are particularly welcomed. There are about 1,800 pandas living in the wild in China and a few hundred in captivity worldwide.

Meng Meng was artificially inseminated on March 26. Female pandas are fertile only for a few days per year at the most.

The new arrivals and their mother won’t be on show to the public for the time being — but visitors can still see Jiao Qing, 14, as male pandas don’t get involved in rearing cubs.
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COPENHAGEN, denmark — A volcano in southwestern Iceland erupted on Thursday, the meteorological office said, spraying red-hot lava and smoke in its sixth outbreak since December.

“An eruption has begun. Work is under way to find out the location of the recordings,” the Icelandic Met Office, which is tasked with monitoring volcanoes, said in a statement.

The total length of the fissure was about 3.9 kilometers (2.42 miles) and had extended by 1.5 kilometers (.93 mile) in about 40 minutes, it said.

Livestreams from the volcano on the Reykjanes peninsula showed glowing hot lava shooting from the ground.

Studies had shown magma accumulating underground, prompting warnings of new volcanic activity in the area just south of Iceland’s capital, Reykjavik.

The most recent eruption on the Reykjanes peninsula, home to 30,000 people or nearly 8% of the country’s total population, ended on June 22 after spewing fountains of molten rock for 24 days.

The eruptions show the challenge faced by the island nation of nearly 400,000 people as scientists warn that the Reykjanes peninsula could face repeated outbreaks for decades or even centuries.

Since 2021, there have been nine eruptions on the peninsula, following the reactivation of geological systems that had been dormant for 800 years.

In response, authorities have constructed barriers to redirect lava flows away from critical infrastructure, including the Svartsengi power plant, the Blue Lagoon outdoor spa and the town of Grindavik.

Flights were unaffected, Reykjavik’s Keflavik Airport said on its web page, but the nearby Blue Lagoon luxury geothermal spa and hotel said it had shut down and evacuated its guests.

Volcanic outbreaks in the Reykjanes peninsula are so-called fissure eruptions, which do not usually disrupt air traffic as they do not cause large explosions or significant dispersal of ash into the stratosphere.

Iceland, which is roughly the size of the U.S. state of Kentucky, boasts more than 30 active volcanoes, making the north European island a prime destination for volcano tourism.
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