The U.S. Department of Commerce is exploring a new program to designate major cloud providers like Alphabet’s (GOOGL) Google and Microsoft (MSFT) as global “gatekeepers” of AI technology, Reuters reported. This initiative is part of the U.S. strategy to limit China’s access to advanced AI capabilities.
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Under the proposed program, these companies would be allowed to provide AI services globally through their cloud platforms without needing a special license. However, they would be subject to strict reporting requirements and would need to implement measures to prevent unauthorized access, particularly from Chinese entities. Meanwhile, other companies not designated as “gatekeepers” would have to compete for limited licenses to import a small amount of advanced AI chips from Nvidia (NVDA) and AMD (AMD).
The U.S. is imposing these measures in place to address concerns about China’s possible misuse of AI for military or cyber threats. The goal is to keep its tech leadership intact and stop harmful uses of AI.
Is GOOGL Stock a Buy, Sell, or Hold?
Turning to Wall Street, GOOGL has a Strong Buy consensus rating based on 27 Buys and six Holds assigned in the last three months. At $209.21, the average Alphabet price target implies a 10.21% upside potential. Shares of the company have gained 36.38% year-to-date.
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What Is the Price Target for Microsoft?
Turning to Wall Street, MSFT stock has a Strong Buy consensus rating based on 27 Buys and two Holds assigned in the last three months. At $499.19, the average Microsoft price target implies an 11.61% upside potential. Shares of the company have gained 19.83% year-to-date.
