Lawmakers Push for Probe into Microsoft’s UAE Agreement
Prominent Republican lawmakers have requested that President Joe Biden’s administration initiate a formal assessment by the intelligence community regarding the developing partnership between Microsoft and Abu Dhabi’s artificial intelligence company G42. The focus of the assessment would be on the Emirati Company’s connections to China.
According to Bloomberg, Representatives Michael McCaul and John Moolenaar, chairmen of the House Foreign Affairs Committee and the Select Committee on China, respectively, explained their concerns about the deal in a letter to National Security Advisor Jake Sullivan.
The letter said: “We support your efforts to work alongside American companies like Microsoft to advance our dominance in the field of artificial intelligence; However, we must also be clear about the risks posed by the transfer of our most important AI technology especially when it comes to countries where the PRC is active.”
In April, Microsoft revealed plans to invest $1.5 billion in G42. As part of the agreement, Microsoft President Brad Smith will join G42’s board of directors, and G42 will utilize Microsoft’s Azure cloud for its AI applications.
The Biden administration has endorsed the deal, aiming to strengthen U.S. leadership in artificial intelligence globally and encouraging G42 to distance itself from Chinese firms, including Huawei Technologies Co.
However, the arrangement swiftly drew scrutiny in Washington, where some officials were already suspicious of G42 due to its purported connections to blacklisted Chinese companies.
The concerns encompass China’s potential access to sensitive American technology and the risks associated with providing artificial intelligence to Gulf nations with dubious human rights records.
A critical issue is whether the United States will authorize the export of Nvidia Corp.’s H100 advanced data center chips to the Middle East.
Bloomberg has reported that officials have been slow in acquiring those licenses over recent months, as they develop a national security strategy for artificial intelligence in the Gulf.
In their letter, McCall and Molnar mentioned having had “many productive conversations” with Microsoft regarding their concerns. However, they emphasized the need for “more robust” national security safeguards before the United States transfers any sensitive technology, including devices, services, and research.
They also called for a more formal framework around chip exports and weights for AI models.
Alongside the concerns about hardware shipments, some Pentagon officials are doubtful that G42 will fully separate from China, a crucial commitment that facilitated the Microsoft partnership.
A new investment entity in Abu Dhabi, named Lunate, is now managing what was previously known as G42’s 42XFund, which has investments in Chinese tech giants like ByteDance Ltd.
Similar to G42, Lunate is part of a business network managed by UAE National Security Advisor Tahnoun bin Zayed Al Nahyan.
