A recent poll by the AI Policy Institute has shed light on strong public opinion in the United States regarding the regulation of AI.
Contrary to claims from the tech industry that strict regulations could hinder competition with China, a majority of American voters prioritise safety and control over the rapid development of AI. The poll reveals that 75% of both Democrats and Republicans prefer a cautious approach to AI development to prevent its misuse by adversaries.
The debate underscores growing concerns about national security and technological competitiveness. While China leads in AI patents, with over 38,000 registered compared to the US’s 6,300, Americans seem wary of sacrificing regulatory oversight in favour of expedited innovation.
Most respondents advocate for stringent safety measures and testing requirements to mitigate potential risks associated with powerful AI technologies.
Moreover, the poll highlights widespread support for restrictions on exporting advanced AI models to countries like China, reflecting broader apprehensions about technology transfer and national security. Despite the absence of comprehensive federal AI regulation in the US, states like California have begun to implement their own measures, prompting varied responses from tech industry leaders and policymakers alike.
The Biden administration announced a plan to allocate up to $1.6 billion to advance technology for packaging computer chips, a crucial step to maintain the US edge over China in fields like AI. The funding, authorised under the 2022 CHIPS Act, aims to innovate faster data transfer methods between chips and manage their heat generation. Laurie Locascio, an under-secretary in the Commerce Department, announced the initiative at an industry conference, signalling companies to apply for grants up to $150 million each.
The CHIPS Act, which received bipartisan support, allocates $52 billion to bolster domestic chip production, mainly focusing on factories that transform silicon wafers into chips. The US currently contributes about 10% to this industry, with much of the activity outsourced to Asia. Packaging, an essential process that attaches finished chips to substrates, is primarily done in Taiwan, Malaysia, South Korea, the Philippines, Vietnam, and China. The US handles only about 3% of advanced chip packaging.
Why does it matter?
Federal funding will target the next stages of chip production, ensuring chips made in the US can be sent to somewhere other than Asia for packaging to reduce dependence on foreign companies. The shift aligns with the industry’s push for perfecting computing performance by combining multiple chips. Companies like Nvidia and Intel are already making strides in this area, with federal support helping to keep US firms at the forefront of technology. The new grants are part of a $3 billion initiative under the National Advanced Packaging Manufacturing Program, aiming to foster innovation and self-sufficiency in the semiconductor sector.
At the recent World Artificial Intelligence Conference in Shanghai, Chinese GPU developers seized the opportunity to showcase their products in Nvidia’s absence. Prominent companies such as Iluvatar Corex, Moore Threads, Enflame Technology, Sophgo, and Huawei’s Ascend were at the forefront, highlighting their advancements despite significant challenges in manufacturing and software ecosystems.
Enflame Technology emphasised the shift from foreign-dominated computing clusters to a mix of Chinese and foreign GPUs. The company, along with AI solutions firm Infinigence, is promoting compute resources that utilise a variety of chips from both Nvidia and Chinese manufacturers. However, US export restrictions have prevented Nvidia from selling its most advanced chips in China, and several Chinese firms, including Huawei, are struggling with manufacturing hurdles due to being blacklisted by the US.
Huawei’s booth was a major attraction, showcasing its Ascend 910B chips, which train numerous large language models in China. Meanwhile, Enflame presented its Cloudblazer T20 and T21 AI-training chips, benefiting from not being on the US trade blacklist, which allows it access to global foundries like TSMC.
Despite these efforts, Chinese GPUs still need to catch up with their global counterparts regarding performance. Nvidia remains a dominant player, with tailored chips for the Chinese market continuing to be popular. Nvidia is expected to deliver over 1 million H20 GPUs in China this year, generating $12 billion in sales. However, experts highlight that China’s in-house technology still needs to meet its substantial domestic AI demand.
Baidu’s driverless taxi service, Apollo Go, has quickly become popular in Wuhan, China, since its launch in August 2022, despite complaints from locals and taxi drivers. The service, operated by Baidu’s autonomous driving unit, has amassed a fleet of over 500 vehicles in the city of 13.7 million people. However, its success has prompted local taxi drivers to petition the municipal transport authority to restrict its use, citing job losses and declining income.
In a letter sent in late June, Wuhan Jianshe Automotive Passenger Transportation, a local taxi operator, reported that four of its 159 taxis had quit since April due to competition from the robotaxis. The company accused the autonomous vehicles of taking jobs away from grassroots drivers. Baidu did not respond to a request for comment, but the company mentioned in May that it had reported misinformation about Apollo Go on social media to the police, resulting in the arrest of more than ten suspects.
Despite years of financial losses, Baidu’s autonomous driving project is now aiming for profitability. Wang Yunpeng, head of Baidu’s Intelligent Driving Group, expressed confidence in an internal letter in April. The company plans to expand Apollo Go’s fleet in Wuhan to 1,000 vehicles and aims to break even locally by the end of the year, according to Chen Zhuo, general manager of Baidu’s self-driving unit.
Alipay, China’s leading mobile payment service, has introduced a new tap-and-pay feature to simplify the checkout process for merchants and enhance user experience on Android and iPhone devices.
The Ant Group-operated service, recognised for popularising QR code payments, launched the Tap! function, allowing users to complete transactions by tapping their smartphones on a merchant’s USB device at the register. The new tap-and-pay service, now being introduced in major cities in China and available to over 2,300 brands and merchants in major cities like Shanghai, Chengdu, Wuhan, and Hangzhou, aims to speed up in-store mobile payments.
That move indicates Alipay’s ongoing efforts to advance contactless payment methods, following similar features by Samsung, Google, and Apple worldwide. Usually, tap-and-pay functions use Near-Field Communication (NFC) technology to enable secure transactions and data exchanges with a simple tap of a smart device within a 4-centimeter range.
However, Alipay stated that its Tap! feature differs from the NFC payment methods of Apple Pay, Samsung Pay, and Google Pay, which use card emulation. Instead, Alipay’s service turns a smartphone into an NFC tag reader, simplifying the QR code payment process with a single tap.
Why does this matter?
Tech companies’ increasing foray into contactless payments shapes the future of money transactions at point-of-sale (POS) purchases, highlighting the ongoing shift towards contactless payments on mobile devices such as smartphones and wearables. That evolution grants tech companies significant influence over consumer payment options, making it an important area to monitor.
At the recent World AI Conference in Shanghai, SenseTime introduced its latest model, SenseNova 5.5, showcasing capabilities comparable to OpenAI’s GPT-4o. This unveiling coincided with OpenAI’s decision to block its services in China, leaving developers scrambling for alternatives.
OpenAI’s move, effective from July 9th, blocks API access from regions where it does not support service, impacting Chinese developers who relied on its tools via virtual private networks. The decision, amid US-China technology tensions, underscores broader concerns about global access to AI technologies.
The ban has prompted Chinese AI companies like SenseTime, Baidu, Zhipu AI, and Tencent Cloud to offer incentives, including free tokens and migration services, to lure former OpenAI users. Analysts suggest this could accelerate China’s AI development, challenging US dominance in generative AI technologies.
The development has sparked mixed reactions in China, with some viewing it as a move to bolster domestic AI independence amidst geopolitical pressures. However, it also highlights challenges in China’s AI industry, such as reliance on US semiconductors, impacting capabilities like Kuaishou’s AI models.
Microsoft has announced plans to provide Apple iOS devices to its employees in China so they can access authentication apps due to the unavailability of Google’s Android services in the country. This move, part of Microsoft’s global Secure Future Initiative, aims to mitigate security risks highlighted by recent breaches, including a high-profile hack by Russian hackers earlier this year.
Bloomberg News first reported that Microsoft, starting in September, will instruct its employees in China to use Apple devices at the workplace. The decision is driven by the absence of the Google Play Store in China, which limits employees’ access to essential security apps like Microsoft Authenticator and Identity Pass.
A Microsoft spokesperson confirmed the shift, emphasising the need for reliable access to required security apps. The company, which has operated in China since 1992 and maintains a significant research and development centre there, will provide iPhone 15 models to employees currently using Android handsets across China, including Hong Kong.
Australia’s government cybersecurity agency has pointed fingers at a China-backed hacker group, APT40, for pilfering passwords and usernames from two undisclosed Australian networks back in 2022. The Australian Cyber Security Centre, in collaboration with leading cybersecurity agencies from the US, Britain, Canada, New Zealand, Japan, South Korea, and Germany, released a joint report attributing these malicious cyber operations to China’s Ministry of State Security, the primary agency overseeing foreign intelligence. Despite these claims, China’s embassy in Australia refrained from immediate comments on the matter, dismissing the hacking allegations as ‘political manoeuvring’.
The accusations against APT40 come in the wake of previous allegations by US and British officials in March, implicating Beijing in a large-scale cyberespionage campaign that targeted a wide range of individuals and entities, including lawmakers, academics, journalists, and defence contractors. Moreover, New Zealand also reported on APT40’s targeting of its parliamentary services and parliamentary counsel office in 2021, which resulted in unauthorised access to critical information.
In response to these cyber threats, Defence Minister Richard Marles emphasised the commitment of the Australian government to safeguard its organisations and citizens in the cyber sphere. The attribution of cyber attacks marks a significant step for Australia, signalling its proactive stance in addressing cybersecurity challenges. The timing of this report is noteworthy as Australia and China are in the process of repairing strained relations following tensions that peaked in 2020 over the origins of COVID-19, leading to retaliatory tariffs imposed by Beijing on Australian exports, most of which have now been lifted.
The identification of APT40’s cyber activities stresses the persistent threat posed by state-sponsored hacker groups and the critical importance of robust cybersecurity measures to protect sensitive information and national security. The incident serves as a reminder of the importance of joint attribution networks and international cooperation in combating cyber threats.
The European Commission has initiated a consultation with the semiconductor industry to gather views on China’s expanded production of older-generation computer chips, known as legacy chips. The effort precedes two voluntary surveys targeting the chip industry and major chip-using firms, which are due in September. The Commission aims to assess the role of legacy chips in supply chains and explore potential joint measures with the US to address dependency and market distortion.
That move comes amid rising tensions between the EU and China as the European Union seeks to shield its industries from Chinese competition. Recently, the Commission imposed provisional tariffs of up to 37.6% on Chinese electric vehicles, signalling a potentially tougher stance towards Beijing. Chinese investment in legacy chip production, driven by state subsidies and US restrictions on advanced chips, has raised concerns in the West about long-term market implications and potential oversupply.
The Commission’s antitrust chief, Margrethe Vestager, hinted in April at a possible investigation into legacy chips after discussions with US officials. A detailed report released by the European Commission earlier this year highlighted the extensive support provided by the Chinese government to domestic firms across various sectors, including semiconductors. The new chip-focused surveys are broader in scope than previous US security-focused surveys, aiming to gather comprehensive data on chip sourcing, products, pricing, and competitive estimates.
Chinese Premier Li Qiang has called for global cooperation and a more open mindset in the field of AI amid growing competition between China and the United States. Speaking at the World AI Conference (WAIC) in Shanghai, Li emphasised the importance of international collaboration, noting that each country has unique strengths in AI technology, data, and markets.
China has made significant strides in generative AI, with the UN reporting that Beijing has led the filing of generative AI patents globally. The progress has sparked concern in the US and other nations, who worry about potential espionage uses of Chinese technology. In April, the US revoked licenses for some chip exports after unveiling a Huawei computer powered by Intel AI technology.
Premier Li urged the promotion of cross-border data movement, free trade of equipment, and infrastructure connectivity to foster AI development. He also highlighted the need for international cooperation to address the risks associated with rapidly advancing AI technology, advocating for the establishment of global AI regulations and technical standards.
