Republican lawmakers have raised concerns about Microsoft's $1.5 billion investment in UAE-based AI firm G42 due to G42's historical ties to China. They have requested an intelligence assessment from the Biden administration regarding the deal. The lawmakers are particularly concerned about the possible transfer of sensitive technology as the deal involves export-restricted chips and vital AI model data. Microsoft's investment in G42 has raised concerns about the potential risks of technology transfer to China, given G42's past connections to the country. The lawmakers are seeking more information to ensure that national security interests are protected [fac839f9].
In a significant development, the US government has approved the export of advanced AI chips to a Microsoft-operated facility in the UAE as part of its partnership with G42. This approval comes after Microsoft invested $1.5 billion in G42 earlier in 2024, acquiring a minority stake and a board seat. The export license includes strict conditions, mandating Microsoft to restrict access to its UAE facility from personnel from nations under US arms embargoes, including China [c04d97a5].
This decision reflects the US government's ongoing efforts to balance economic interests with national security concerns. US officials have expressed worries about AI systems posing national security risks, particularly in relation to potential Chinese access to advanced technologies. G42 is reportedly working with US partners and the UAE government to ensure compliance with AI standards. Notably, G42's chairman, Sheikh Tahnoon bin Zayed Al Nahyan, also serves as the UAE's national security advisor, highlighting the strategic importance of this partnership [c04d97a5].
The concerns raised by Republican lawmakers about G42's ties to China underscore the broader debate regarding the balance between economic collaboration and national security in the context of US-China relations [fac839f9].