US Proposes Requiring Reporting for Advanced AI, Cloud Providers

A sign in front of Department of Commerce building is seen before an expected report of new home sales numbers in Washington, US, January 26, 2022. REUTERS/Joshua Roberts/File Photo Purchase Licensing Rights
A sign in front of Department of Commerce building is seen before an expected report of new home sales numbers in Washington, US, January 26, 2022. REUTERS/Joshua Roberts/File Photo Purchase Licensing Rights
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US Proposes Requiring Reporting for Advanced AI, Cloud Providers

A sign in front of Department of Commerce building is seen before an expected report of new home sales numbers in Washington, US, January 26, 2022. REUTERS/Joshua Roberts/File Photo Purchase Licensing Rights
A sign in front of Department of Commerce building is seen before an expected report of new home sales numbers in Washington, US, January 26, 2022. REUTERS/Joshua Roberts/File Photo Purchase Licensing Rights

The US Commerce Department said Monday it is proposing to require detailed reporting requirements for advanced artificial intelligence developers and cloud computing providers to ensure the technologies are safe and can withstand cyberattacks.

The proposal from the department's Bureau of Industry and Security would set mandatory reporting to the federal government about development activities of "frontier" AI models and computing clusters.

It would also require reporting on cybersecurity measures as well as outcomes from so-called red-teaming efforts like testing for dangerous capabilities including the ability to assist in cyberattacks or lowering barriers to entry for non-experts to develop chemical, biological, radiological, or nuclear weapons.

External red-teaming has been used for years in cybersecurity to identify new risks, with the term referring to US Cold War simulations where the enemy was termed the "red team."

Generative AI - which can create text, photos and videos in response to open-ended prompts - has spurred excitement as well as fears it could make some jobs obsolete, upend elections and potentially overpower humans and have catastrophic effects, Reuters reported.

Commerce said the information collected under the proposal "will be vital for ensuring these technologies meet stringent standards for safety and reliability, can withstand cyberattacks, and have limited risk of misuse by foreign adversaries or non-state actors."

President Joe Biden in October 2023 signed an executive order requiring developers of AI systems that pose risks to US national security, the economy, public health or safety to share the results of safety tests with the US government before they are released to the public.

The rule would establish reporting requirements for advanced artificial intelligence (AI) models and computing clusters.

The regulatory push comes as legislative action in Congress on AI has stalled.

Earlier this year, the BIS conducted a pilot survey of AI developers. The Biden administration has taken a series of steps to prevent China from using US technology for AI, as the burgeoning sector raises security concerns.

Top cloud providers include Amazon.com's AWS, Alphabet's Google Cloud and Microsoft's Azure unit.



Google-parent Alphabet Earnings Shine with Help of AI

Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP
Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP
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Google-parent Alphabet Earnings Shine with Help of AI

Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP
Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP

Google-parent Alphabet on Wednesday reported quarterly profits that topped expectations, saying artificial intelligence has boosted every part of its business.

Alphabet's second-quarter profit of $28.2 billion -- on $96.4 billion in revenue -- came with word that the tech giant will spend $10 billion more than it previously planned this year on capital expenditures, as it invests to meet growing demand for cloud services.

"We had a standout quarter, with robust growth across the company," said Alphabet chief executive Sundar Pichai.

"AI is positively impacting every part of the business, driving strong momentum."

Revenue from search grew double digits in the quarter, with features such as AI Overviews and the recently launched AI mode "performing well," according to Pichai.

Ad revenue at YouTube continues to grow along with the video platform's subscription services, Alphabet reported.

Alphabet's cloud computing business is on pace to bring in $50 billion over the course of the year, according to the company.

"With this strong and growing demand for our cloud products and services, we are increasing our investment in capital expenditures in 2025 to approximately $85 billion and are excited by the opportunity ahead," Pichai said.

Alphabet shares were up nearly 2 percent in after-market trades that followed the release of the earnings figures.

Investors have been watching closely to see whether the tech giant may be pouring too much money into artificial intelligence and whether AI-generated summaries of search results will translate into fewer opportunities to serve up money-making ads.

The internet giant is dabbling with ads in its new AI Mode for online search, a strategic move to fend off competition from ChatGPT while adapting its advertising business for an AI age.

The integration of advertising has been a key question accompanying the rise of generative AI chatbots, which have largely avoided interrupting the user experience with marketing messages.

However, advertising remains Google's financial bedrock.

"Google is doing well despite tariff headwinds and rising AI competition in search," said eMarketer principal analyst Yory Wurmser.

"It's also successfully monetizing AI Overviews and AI Mode, a good sign for the future."

Google and rivals are spending billions of dollars on data centers and more for AI, while the rise of lower-cost model DeepSeek from China raises questions about how much needs to be spent.

Antitrust battles

Meanwhile the online ad business that generates the cash Google invests in its future could be neutered due to a defeat in a US antitrust case.

During the summer of 2024, Google was found guilty of illegal practices to establish and maintain its monopoly in online search by a federal judge in Washington.

The Justice Department is now demanding remedies that could transform the digital landscape: Google's divestiture from its Chrome browser and a ban on entering exclusivity agreements with smartphone manufacturers to install the search engine by default.

District Judge Amit Mehta is considering "remedies" in a decision expected in the coming days or weeks.

In another legal battle, a different US judge ruled this year that Google wielded monopoly power in the online ad technology market, another legal blow that could rattle the tech giant's revenue engine.

District Court Judge Leonie Brinkema ruled that Google built an illegal monopoly over ad software and tools used by publishers.

Combined, the courtroom defeats have the potential to leave Google split up and its influence curbed.

Google said it is appealing both rulings.