I have run some large open models on neoclouds and the KYC has been minimal, even if the USG stops all GPU exports it will be extremely difficult to crack down on Chinese renting GPUs on Western servers.

There will be a black market of renting IDs to KYC and gain access to the chips, and then the hosts will monitor their servers for what is being trained, it will be a cat and mouse game.

We are headed for an increasingly unfree computation landscape and the politicians are going to make demands that will be hard to deliver.