Google and OpenAI reportedly provided access to their artificial intelligence models to Singapore-based subsidiaries of major Chinese technology companies, according to an investigation by the Financial Times.
The report says the subsidiaries are linked to Chinese firms including Alibaba, Baidu, and Tencent, some of which appear on U.S. government watchlists over alleged ties to China’s military.
According to the report, the companies gained access through subsidiaries operating in Singapore rather than directly from mainland China, making the arrangements legally permissible under current U.S. restrictions while raising concerns among lawmakers and national security officials in Washington.
U.S. officials are reportedly concerned that Chinese companies could use advanced American AI models to improve their own competing systems through a process known as “distillation,” in which the outputs of powerful AI models are used to train or enhance other models.
OpenAI confirmed that it recently blocked accounts linked to Alibaba over concerns about prohibited use of its developer platform and said it reported the activity to the U.S. government.
The company said its AI models are not available inside mainland China but that its services remain accessible in jurisdictions where it can enforce its usage policies and monitor suspicious activity.
Google also offers AI services in Singapore and Hong Kong under geographic restrictions. However, according to the report, the company acknowledges that location-based controls alone may not always prevent sophisticated attempts to access its technology.
Anthropic, by contrast, has adopted a stricter policy, reportedly prohibiting Chinese companies and foreign entities controlled by them from using its AI models.
(YWN World Headquarters – NYC)
