06:12 AM EDT, 08/23/2024 (MT Newswires) -- (Updates with statement from Amazon ( AMZN ) in the fifth paragraph.)

Amazon.com ( AMZN ) and Microsoft's ( MSFT ) cloud services are being used by state-linked Chinese organizations to access restricted US microchip and artificial intelligence tools, Reuters reported Thursday, citing public tender documents.

Reuters said it found at least 11 entities using cloud computing tools such as Amazon Web Services to access technologies that the US has sought to keep out of China's hands. The loophole that does not violate US regulations, Reuters reported.

The entities use third-party vendors to access the cloud services such as Microsoft's ( MSFT ) Azure, which give them access to capabilities of barred Nvidia ( NVDA ) microchips and OpenAI's ChatGPT, Reuters reported.

Amazon ( AMZN ) has also marketed its cloud services to Chinese customers as a tool to access AI tools, Reuters reported.

Amazon ( AMZN ) said in an email to MT Newswires that Amazon Web Services "complies with all applicable US laws, including trade laws, regarding the provision of AWS services inside and outside of China."

Microsoft ( MSFT ) did not immediately reply to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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