Photo credit: www.investing.com

U.S. Approves AI Chip Exports to Microsoft-Linked UAE Facility

According to a report by Axios, the U.S. government has granted permission for the export of state-of-the-art artificial intelligence chips to a Microsoft-operated facility in the United Arab Emirates (UAE). This decision relates to Microsoft’s ongoing partnership with the Emirati AI company G42, which has been under close examination due to potential national security concerns.

This strategic collaboration saw Microsoft invest $1.5 billion in G42 earlier this year, securing a minority stake and a position on the company’s board. Under this agreement, G42 intends to leverage Microsoft’s cloud services to enhance its AI applications.

However, this partnership has attracted scrutiny from U.S. lawmakers, who expressed fears that G42 might facilitate the transfer of advanced U.S. AI technologies to China. Lawmakers have called for a thorough U.S. evaluation of G42’s affiliations with the Chinese Communist Party, military, and government before allowing further progress on the Microsoft deal.

As per the details shared by Axios, the export license includes specific stipulations that require Microsoft to restrict access to its UAE facility. Personnel from countries under U.S. arms embargoes or those listed on the U.S. Bureau of Industry and Security’s Entity List are prohibited from accessing this facility.

This includes individuals located in China, members of the Chinese government, or those representing any organizations based in China. These restrictions are part of a broader concern that AI technologies could exacerbate national security vulnerabilities by enabling the development of chemical, biological, and nuclear weapons.

In response to these growing concerns, the Biden administration mandated, in October, that developers of significant AI systems must disclose critical information about their technologies to the U.S. government.

G42 has indicated that it is actively collaborating with U.S. partners and the UAE government to adhere to standards concerning AI development and deployment. This initiative comes amid ongoing apprehensions regarding its connections to China.

The ownership structure of G42 includes significant interests from Abu Dhabi’s sovereign wealth fund Mubadala Investment Company, members of the UAE ruling family, and American private equity firm Silver Lake. Notably, Sheikh Tahnoon bin Zayed Al Nahyan, G42’s chairman, also serves as the UAE’s national security advisor and is related to the UAE’s president.

Source
www.investing.com