New U.S. regulations on Cloud Enterprises: Know your customer

  • Commerce Secretary Gina Raimondo reveals upcoming US regulations for cloud enterprises. These measures aim to monitor access to US clouds, preventing misuse by non-state actors or undesirable entities like China.
  • Raimondo discusses export controls on chips in American cloud data centres.
  • President Biden’s October executive order mandates AI developers to share safety test results under the Defense Production Act (DPA).

With increasing concerns about security in the AI industry, US Commerce Secretary Gina Raimondo has revealed that the Biden administration is set to introduce regulations for cloud enterprises. These regulations aim to monitor the individuals accessing US cloud services for the purpose of training AI models.

Raimondo urges vigilance in cloud security

During an interview with Reuters, Raimondo emphasized, “We can’t have non-state actors or China or folks who we don’t want accessing our cloud to train their models.”

She pointed out, “We use export controls on chips. Those chips are in American cloud data centres so we also have to think about closing down that avenue for potential malicious activity.”

As early as next week, the proposed “know your customer” rule is expected to be made public. It is significant, according to Raimondo.

Also read: US wants to curb China’s chip industry, but this startup is shaking things up

Biden’s executive order on AI safety sparks action

In October, President Joe Biden issued an executive order requiring developers of AI systems to share safety test results with the US government before making them public. This directive, leveraging the government’s authority under the Defense Production Act (DPA), is particularly crucial for AI systems that present potential risks to US national security, the economy, public health, or safety.

Companies will soon receive the DPA survey inquiries, according to Raimondo, and they will have 30 days to reply. The department was “beginning the process of requiring US cloud companies to tell us every time a non-US entity uses their cloud to train a large language model.”

“Any company that doesn’t want to comply is a red flag for me,” Raimondo added.

Also read: Nvidia designs a gaming chip for China, bypassing US controls


Sylvia Shen

Sylvia Shen, a news reporter at BTW media dedicated in Fintech and Blockchain. She graduated from University of California, Davis. Send tips to

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