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Chinese AI firms exploit loophole to bypass US chip restrictions

Technology

Chinese AI companies are circumventing US chip restrictions by sending engineers—and loads of data—abroad instead of importing high-tech chips. The trick? They fly out to places like Malaysia, rent servers with American-made chips, and train their AI models there using hard drives packed with data. This hands-on method is known as "sneakernet."

China is closing the gap with the US in AI

It's a creative (and pretty old-school) way to dodge US export bans meant to slow down China's tech progress. Even though it takes a lot of effort—physically moving hard drives and people—it shows just how determined these companies are. And it's working: China is closing the gap with the US in AI, which has some policymakers worried about losing their tech edge.