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Oracle’s AI Chip Loophole: How ByteDance is Dodging US Restrictions
ByteDance is renting Nvidia’s top AI chips from Oracle on US soil, skirting export bans. The US fears advanced AI use by China for military or economic gain. While ByteDance insists its US operations are separate, some call it cosmetic. Meanwhile, Alibaba and Tencent explore…
Hot Take:
Oracle’s new business motto: if there’s a loophole, there’s a way! In the high-stakes game of AI chip hide-and-seek, it looks like profit trumps patriotism. Who needs international relations when you’ve got advanced AI models to train, right?
Key Points:
- Oracle rents Nvidia’s advanced AI chips to ByteDance, skirting US chip export bans.
- ByteDance uses US-based servers to train AI models, exploiting a legal loophole.
- US lawmakers fear advanced AI could be used for military or surveillance purposes by China.
- Other Chinese companies like Alibaba and Tencent are exploring similar loopholes.
- The US Commerce Department is aware but struggles to close the loophole amid business pushback.
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