--- title: OpenAI and Google are selling AI to blacklisted Chinese... description: OpenAI and Google have confirmed they supply advanced AI services to Singapore-registered subsidiaries of Alibaba, Baidu, and Tencent — all three of which... canonical: https://daily.dev/posts/openai-and-google-are-selling-ai-to-blacklisted-chinese-firms-hgzmkgqdq twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: OpenAI and Google are selling AI to blacklisted Chinese firms | daily.dev og:description: OpenAI and Google have confirmed they supply advanced AI services to Singapore-registered subsidiaries of Alibaba, Baidu, and Tencent — all three of which... og:url: https://daily.dev/posts/openai-and-google-are-selling-ai-to-blacklisted-chinese-firms-hgzmkgqdq og:image: https://api.daily.dev/og/posts/HgZMKGQDq.png og:image:alt: OpenAI and Google are selling AI to blacklisted Chinese firms og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # OpenAI and Google are selling AI to blacklisted Chinese firms **[The Next Web](https://daily.dev/sources/tnw)** · 4 min read · 0 upvotes · 1 comments ## Summary OpenAI and Google have confirmed they supply advanced AI services to Singapore-registered subsidiaries of Alibaba, Baidu, and Tencent — all three of which appear on the Pentagon's military blacklist. The arrangement is legal because US export controls restrict access by geography (mainland China) and named entities, not by corporate ownership chains. A Chinese firm can register a Singapore subsidiary and purchase AI services its parent company cannot. Anthropic has taken a stricter stance, barring Chinese-owned entities entirely and lobbying Washington for tighter software export controls. Critics argue the rules need to be rewritten around capability and ownership rather than corporate address, warning that the same loophole pattern seen with Nvidia chips is now emerging at the AI software layer. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Questions this post answers ### How are Alibaba, Baidu and Tencent accessing OpenAI and Google AI models despite being on the US military blacklist? They access these models through Singapore-registered subsidiaries. US export controls restrict named entities and named locations, and since mainland China is restricted but Singapore is not, a blacklisted Chinese parent company can register a Singapore unit that legally signs contracts with OpenAI and Google for advanced AI services its mainland parent cannot obtain directly. _Anyone weighing AI vendor risk under shifting export rules can follow policy coverage like this on daily.dev._ ### What is AI model distillation and why did OpenAI suspend Alibaba-linked API access over it? Distillation is when a developer uses a leading model's outputs to train a rival system, effectively copying its capabilities without licensing them. OpenAI suspended API access for Alibaba-linked users after detecting suspected distillation activity and reported the incident to the US government, since its usage policies and Google's both explicitly forbid the practice. _Developers tracking API usage policy risks around frontier models can follow these disputes on daily.dev._ ### What distillation accusations has Anthropic made against Chinese AI labs? Anthropic has accused DeepSeek, Moonshot and MiniMax of distilling its Claude model outputs to train competing systems. It also told Congress it believes Alibaba created roughly 25,000 fake accounts to run more than 28.8 million interactions with Claude in violation of its terms of service, and has pushed Washington for stricter AI software export controls in response. _Teams evaluating which AI vendors enforce the strictest usage terms can track this story on daily.dev._ ## Community discussion Top comments from developers on daily.dev. **@kingmadeit** · 0 upvotes > Tough one.. ## Similar posts on daily.dev - [US appears open to reversing some China tech bans](https://daily.dev/posts/us-appears-open-to-reversing-some-china-tech-bans-d9sxck8xt) · The Register · 0 upvotes · 0 comments - [China plans to block US investment in its top AI firms without government approval](https://daily.dev/posts/china-plans-to-block-us-investment-in-its-top-ai-firms-without-government-approval-b2glxkevk) · The Next Web · 1 upvotes · 0 comments - [No one has a good plan for how AI companies should work with the government](https://daily.dev/posts/no-one-has-a-good-plan-for-how-ai-companies-should-work-with-the-government-nkajqoze1) · TechCrunch · 0 upvotes · 1 comments --- Tags: [#google](https://daily.dev/tags/google), [#llm](https://daily.dev/tags/llm), [#openai](https://daily.dev/tags/openai), [#anthropic](https://daily.dev/tags/anthropic) [View this post on daily.dev](https://daily.dev/posts/openai-and-google-are-selling-ai-to-blacklisted-chinese-firms-hgzmkgqdq) ```json 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