Google and Microsoft's cloud divisions are providing Chinese companies with access to Nvidia's AI chips by offering data centre services in locations outside China, according to a report by The Information on Wednesday.

The Biden administration has implemented measures to block Chinese firms from utilizing US technology for artificial intelligence, including advanced semiconductors, due to rising security concerns in the sector. Microsoft, Alphabet, Nvidia, and the Department of Commerce have not yet responded to requests for comment from Reuters.

In January, US Commerce Secretary Gina Raimondo proposed that cloud companies should ascertain if foreign entities are using data centres in the United States to train AI models. Microsoft is offering server rental services, including those equipped with Nvidia's A100 and H100 chips, to Chinese customers via data centres located outside China, as reported by The Information, citing an employee of the company with knowledge of the services and a person involved in the sales.

Google allows Chinese customers to use servers based outside mainland China and is confident that its services adhere to US export controls, according to a source familiar with the situation cited by the publication.