OpenAI and Google have been providing advanced artificial intelligence services to Singapore-based subsidiaries of Chinese technology companies blacklisted by the Pentagon, highlighting a gap in U.S. efforts to restrict Beijing's access to cutting-edge AI technology. The companies confirmed to the Financial Times that they have supplied AI services to affiliates of Alibaba, Baidu, and Tencent, all of which have been placed on the Defense Department's 1260H blacklist over alleged ties to China's military. While the transactions are legal under current U.S. regulations, they have renewed calls for tighter export controls on advanced AI models. OpenAI said it suspended Alibaba-affiliated users' access to its application programming interface, or API, last month after identifying suspected "distillation," a process in which developers use the output of one AI model to improve competing systems. An OpenAI spokesperson said the company reported the suspected activity to the U.S. government. OpenAI said it prohibits access to its models from within China but allows "some companies" with Chinese ownership or headquarters to use its AI tools in countries "where we can enforce safeguards and monitor for distillation." Google said its AI services are available in Hong Kong and Singapore, subject to company policies that prohibit distillation and other misuse. The disclosures have intensified debate over whether the Trump administration should impose broader export controls on advanced AI software. The U.S. government has taken steps to regulate access to certain frontier AI models, including Anthropic's Mythos and Fable models, and OpenAI's GPT-