Google has defended its Google AI sales after reports claimed that its AI tools reached overseas units of major Chinese technology companies. The company said every service follows US export controls and comes with strict AI safeguards to prevent misuse. Google added that it does not offer these services from mainland China and follows all trade laws.
The issue came into focus after a Financial Times report said Google and OpenAI supplied AI services to Singapore-based subsidiaries of Alibaba, Tencent, and Baidu. These Chinese companies appear on a Pentagon list of firms that have links with China's military. However, current US rules allow companies to provide services to overseas subsidiaries if they operate in approved countries.
Google said its AI services are available in places like Singapore and Hong Kong, where business customers can legally access them. The company explained that every customer must follow clear rules before using its AI products. Google also said it watches how the services are used and quickly blocks accounts that break its policies.
The company also spoke about a growing problem called AI model distillation. This method allows developers to study the answers given by advanced AI models and use that information to build similar systems. Google said this remains a serious concern across the AI industry.
Company officials added that simply blocking one country will not stop people from trying to copy AI models. Instead, Google continues to monitor suspicious activity and shares security information with other technology companies.
The latest report shows that AI technology now moves across countries much faster than many existing regulations. Governments may need stronger rules that cover AI software and cloud services instead of focusing only on computer chips and hardware exports.
Experts believe the case also shows a gap in today's export controls. Most rules cover physical products or direct sales inside restricted countries. Cloud-based AI services work differently since companies can operate through offices and subsidiaries in other countries. This makes it harder for regulators to decide where new limits should apply.
Mark MacCarthy, a senior fellow at Georgetown University's Institute for Technology Law and Policy, said lawmakers have already discussed expanding export rules to overseas data centers. He also said some lawmakers want tighter limits on Chinese AI models entering the US market. These discussions could shape future AI policies as competition between the United States and China continues to grow.
Reports also said OpenAI recently suspended API access for some Alibaba-linked users after concerns about possible misuse. Alibaba, Tencent, and Baidu had not responded to media questions when the report was published. The discussion now goes beyond whether the sales follow the law. Many experts now ask whether today's AI safeguards are strong enough to protect advanced technology while supporting global business.
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