Market Chatter: OpenAI, Google Supplied AI Services to Blacklisted Chinese Firms via Overseas Units

MT Newswires Live17:21

Microsoft-backed (MSFT) OpenAI and Alphabet's (GOOG, GOOGL) Google have been providing AI services to Singapore-based subsidiaries of Chinese firms, including Alibaba (BABA), Baidu (BIDU) and Tencent, despite the parent companies being blacklisted by the Pentagon over alleged military ties, the Financial Times reported Friday.

According to the report, the sales were legal because the US has not broadly restricted access to advanced AI models by Chinese-headquartered companies, even those on the Pentagon's 1260H blacklist.

OpenAI, Google did not immediately respond to MT Newswires request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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