Hey Amy, I saw this news about Chinese companies using Amazon's cloud to get some special computer chips. What's that all about?

Oh, it's quite interesting! Some Chinese organizations are using cloud services from companies like Amazon to access very powerful AI chips made by Nvidia. These are chips that they can't buy directly because of US export rules.

AI chips? Are these like the chips in our phones?

Not quite. These are super powerful chips specially designed for AI tasks. The news mentions two specific types: Nvidia's A100 and H100 chips. They're used for training large AI models, like the ones that power ChatGPT.

Oh, I see. But why can't Chinese companies just buy these chips if they're so useful?

Well, the US government has banned exporting these specific chips to China. They're worried about how they might be used. But using cloud services to access the chips isn't technically exporting, so it's not against the current rules.

That sounds like a clever workaround. Can you give me an example of who's doing this?

Sure! The article mentions that Shenzhen University spent money to use Amazon's cloud servers powered by these Nvidia A100 and H100 chips. They did this through a Chinese company acting as a middleman.

Wow, even universities are doing this? What are they using these powerful chips for?

The article doesn't specify for all cases, but it mentions that some organizations are using them to develop their own large language models - basically, their own versions of AI like ChatGPT.

I can see why this might be a problem for the US government. Are they trying to stop this?

Yes, they are. Some US politicians are working on new rules to close this loophole. They want to make it harder for Chinese entities to access these powerful AI chips through cloud services.

What about the companies providing these cloud services? What do they say about all this?

Amazon, for example, says they're following all US laws about providing services in and outside of China. But after this news came out, they updated some of their Chinese website posts to say certain services aren't available in China.

This sounds like a big deal for both countries. Is it just about these Nvidia chips?

Not just the chips. The article also mentions that Chinese entities are accessing advanced AI models through these cloud services. For instance, they're using Amazon's cloud to access an AI model called Claude, which they can't get directly.

It seems like a complicated situation balancing technology, business, and international relations.

Exactly! It shows how advanced AI technology has become a critical issue in global politics and trade. The US is trying to restrict access to its most advanced AI tech, while Chinese organizations are finding ways to use it for their own AI development.