US Wants Cloud Firms to Flag Foreign Users in China AI Race (2)

The US wants cloud service providers such as Amazon.com Inc. and Microsoft Corp. to identify and actively investigate foreign clients developing artificial intelligence applications on their platforms, part of a widening tech conflict between Washington and Beijing.

The Biden administration proposal, released Monday, requires the firms to reveal foreign customers’ names and IP addresses. Amazon and its peers, which include Alphabet Inc.’s Google, would need to develop a process to collect those details and report any suspicious activity, according to draft rule published Sunday.

If implemented, Washington could use those requirements to choke off a major avenue ...