An executive order from the Biden administration could force cloud computing companies to report excess energy consumption to the US government. Semafor reported on September 27.
Based on statements from anonymous sources, the expected order will require cloud computing companies like Microsoft, Google and Amazon to disclose when a customer rents a certain amount of computing power.
Semafor noted that this reporting model involves treating computing power as a national resource. Comparisons were also made with other existing practices, such as the know-your-customer policy that requires banks and financial services to monitor and report transactions above a certain limit (and, in the US, cash transactions above $10,000).
The upcoming rules are reportedly intended to allow the US government to determine when certain actors, including foreign companies, use computing power to develop artificial intelligence (AI) projects that could pose a security threat.
Expected rules make little distinction
Although the policy is intended to control the development of AI, Semafor noted that non-AI applications, including video game development and Bitcoin mining, also require large amounts of resources.
The quantity-based approach to usage monitoring would also fail to differentiate within AI development and could miss certain applications. The report noted that while large language models (LLMs) currently require extensive computing power, the amount of computing power required could decrease in the future. Furthermore, some AI tools, such as facial recognition algorithms, already require minimal computing power.
Sources said Semafor that the order is not final and may change. In addition, if the Executive Order comes into effect, it will not immediately implement reporting requirements. Rather, it would likely task the U.S. Department of Commerce with creating rules that would in turn require companies to report the relevant information.
The post that the Biden administration was reportedly working on an executive order requiring disclosure of excessive energy consumption first appeared on CryptoSlate.