The Biden administration is preparing to announce a ground-breaking executive order that could change the face of cloud computing, according to a recent development. According to unnamed sources, this order will require industry leaders in cloud computing like Microsoft, Google, and Amazon to report excessive power usage to the U.S. government, signaling a significant shift in the sector.
The envisioned order aims to treat computational power as a national resource, likening it to existing financial practices, such as “know-your-customer” policies. The objective is clear: to enable the U.S. government to closely monitor the utilization of computational power, especially in endeavors like artificial intelligence (AI) projects that may pose national security concerns.
However, this approach is not without its complexities. While the policy primarily targets AI development, it may inadvertently impact other resource-intensive applications, such as video game development and even Bitcoin mining. The indiscriminate quantity-based monitoring might not distinguish adequately within AI development, potentially overlooking specific applications that demand minimal computational power, like facial recognition algorithms.
It’s important to note that the order remains in a state of flux and may undergo revisions before implementation. When put into effect, it would likely task the U.S. Department of Commerce with formulating the detailed rules that would compel companies to disclose the relevant information.
This executive order holds implications for the burgeoning crypto industry, particularly crypto miners. While not explicitly stated, the order’s focus on power usage raises questions about how it might affect cryptocurrency mining operations that heavily rely on energy-intensive processes.
Crypto mining has faced criticism in the past due to its environmental impact, drawing attention to its substantial power consumption. The possibility of increased scrutiny and reporting requirements could further intensify the spotlight on the industry. This move might push cryptocurrency miners to adopt more energy-efficient methods or face potential regulatory challenges in the future.
The executive order has the potential to change the tech landscape and have an influence on a number of industries, including the cryptocurrency sector. Stakeholders must keep a close eye on developments and be ready for possible adjustments to compliance and operating requirements as negotiations progress and the directive takes shape.