Definition
A gap in US chip export rules where advanced AI chips physically shipped to countries like Thailand or Singapore could still let restricted nations (e.g. China) access their computing power remotely over the internet, without any hardware crossing a border. Regulators are drafting rules to close this gap by controlling remote/cloud access, not just physical shipments.
Why it matters
If finalized, this dramatically widens what counts as a controlled export, affecting any company using overseas cloud AI infrastructure and raising compliance risk across global supply chains.