The Singapore Side Door: OpenAI and Google Selling Frontier AI to Blacklisted Chinese Giants
OpenAI and Google have confirmed they supply advanced AI to Singapore-registered arms of Alibaba, Baidu, and Tencent—three firms on the Pentagon’s blacklist. It is entirely legal, and that is the problem.
Background
- July 10, 2026: Three Chinese tech giants are blacklisted by the US military.
- Key Point: They can still access America’s best AI as long as they do so through Singapore.
Investigation Findings
According to an investigation by the Financial Times, OpenAI and Google provide advanced AI services to Singapore-registered subsidiaries of:
- Alibaba
- Baidu
- Tencent
All three parent companies are on the Pentagon’s “1260H” list, accused of ties to the Chinese military.
Legal Perspective
US export controls hinge on named entities and places. Mainland China is restricted, but Singapore is not. Blacklisted Chinese firms can register subsidiaries in Singapore, allowing them to access AI models they cannot directly purchase from their parent companies.
Comparison with Hardware Loopholes
- Similarities: Similar to a loophole that allowed Chinese firms to buy Nvidia’s Blackwell chips and Vera CPU, this gap enables access to cutting-edge AI software.
- Differences: Current rules don’t ban Chinese-headquartered firms from using advanced AI; they only restrict direct access from mainland China.
Company Statements
- OpenAI: Blocks direct access from mainland China but allows some Chinese-owned companies to use its services in regions where it can monitor for misuse.
- Google: Its AI tools are available in Singapore and Hong Kong, with usage policies prohibiting distillation.
- Anthropic: Takes the strictest stance, barring Chinese companies and entities they own from accessing its frontier models. It has also urged Washington to impose broader export controls on AI software.
Conclusion (from the original text)
“US controls on its Fable model shift”, a sign of ongoing efforts to close loopholes exploited by Chinese users.