OpenAI and Google sell AI models to Chinese tech subsidiaries in Singapore

OpenAI and Google confirmed that they are providing advanced artificial‑intelligence services to subsidiaries of Alibaba, Baidu and Tencent that operate out of Singapore. All three Chinese firms appear on the U.S. Pentagon’s 1260H list, which flags companies with alleged ties to the People’s Liberation Army. Under current U.S. export regulations the transactions are legal because the AI models are accessed through foreign subsidiaries rather than directly from mainland China.

OpenAI recently suspended API access for an Alibaba‑affiliated user after detecting possible “distillation” – the use of model outputs to train competing systems – and reported the incident to U.S. authorities. Google said its AI services are available in markets such as Singapore and Hong Kong, but acknowledged that geographic restrictions alone may not stop sophisticated users from bypassing them. In contrast, Anthropic has taken a stricter approach, outright banning Chinese firms and their controlled entities from its most advanced models.

The revelations have revived debate in Washington over extending AI export controls to match those already applied to high‑end semiconductors, as policymakers seek ways to limit the flow of frontier AI technology to entities linked to the Chinese military.