Closing Loopholes for the Overseas Use and Development of Artificial Intelligence Act

Closing Loopholes for the Overseas Use and Development of Artificial Intelligence Act or the CLOUD AI Act

This bill prohibits certain transactions between a U.S. person (i.e., natural person or entity) and an entity located in China or Macau when the transactions support remote access to certain integrated circuits.

Specifically, the bill prohibits a U.S. person (and any foreign branch of a U.S. person) from providing support to an entity in China or Macau for the remote or cloud use of integrated circuits covered by export control classification numbers 3A090 or 4A090. (The classification numbers cover certain high-performance integrated circuits, computers, electronic assemblies, and related components.)

The bill directs the Department of Commerce to establish the ban no later than 180 days after the bill is enacted and to issue the regulations necessary to implement the bill.