The new rule would require US cloud-service providers such as Amazon.com and Microsoft to seek U.S. government permission before they provide cloud-computing services that use advanced artificial intelligence chips to Chinese customers.
The Biden administration's move would follow other recent measures as Washington and Beijing wage a conflict over access to the supply chain for the world's most advanced technology.
Beijing announced export restrictions on metals used in advanced chip manufacturing days ahead of a visit to China by Treasury Secretary Janet Yellen. The proposed restriction is seen to close a significant loophole. National security analysts have warned that Chinese AI companies might have bypassed the current export controls rules by using cloud services.
These services allow customers to gain powerful computing capabilities without purchasing advanced equipment -- including chips -- on the control list, such as the A100 chips by Nvidia.