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US lawmakers raise worries about China in Microsoft deal with Emirati AI firm G42

VCCircle

VCCircle · 1y ago

US lawmakers raise worries about China in Microsoft deal with Emirati AI firm G42

US lawmakers have expressed concerns about Microsoft's $1.5 billion investment in artificial intelligence (AI) firm G42. They are worried about the transfer of sensitive technology and G42's ties to China, urging the Biden administration for an intelligence assessment. Republican lawmakers want a briefing on the deal before it progresses to involve the transfer of export-restricted semiconductor chips and model weights. They have also raised concerns about the lack of regulations around the export of sensitive AI models and the potential for companies like G42 to share technology with US adversaries like China.

Related News

US Republican lawmakers concerned over Microsoft-G42 AI deal, letter says

Economic Times

Economic Times · 1y ago

US Republican lawmakers concerned over Microsoft-G42 AI deal, letter says

Republican lawmakers are seeking an intelligence briefing from the Biden administration regarding Microsoft's $1.5 billion investment in artificial intelligence firm G42, based in the United Arab Emirates (UAE). Their concerns stem from the transfer of sensitive technology and G42's connections to China. The lawmakers requested the briefing prior to advancing the deal's second phase. G42 and Microsoft have yet to comment on the matter. The US is considering export controls on AI technology due to national security risks. The UAE and China have existing scientific research ties. The request also mentions G42's past digital surveillance work and its associations with Huawei and DarkMatter, which were involved in cyber espionage activities.

Microsoft to invest $1.5 billion in Emirati AI firm G42

Economic Times

Economic Times · 1y ago

Microsoft to invest $1.5 billion in Emirati AI firm G42

Microsoft is reportedly investing $1.5 billion in G42, an artificial intelligence company based in the United Arab Emirates. This move comes as G42 divested its investments in China and is removing Chinese hardware from its operations due to US concerns. The partnership will allow G42 to use Microsoft's cloud services and sell AI services that utilize powerful AI chips. The agreement also includes measures to protect shared AI products and remove Chinese equipment from G42's operations. Microsoft President Brad Smith will join G42's board as part of the deal.

US weighs letting UAE buy over a million advanced Nvidia chips

Economic Times

Economic Times · 3m ago

US weighs letting UAE buy over a million advanced Nvidia chips

The Trump administration is negotiating a deal to allow the United Arab Emirates to import over a million advanced Nvidia chips, surpassing Biden-era limits. This decision has raised concerns about US hardware reaching China. The deal, still under negotiation, could empower UAE's AI firm G42 and US companies building data centers there. If finalized, it signifies a shift in US policy towards AI expansion in the Middle East, amid concerns about China's technological advancements.

Microsoft to invest $1.5 bln in Emirati AI firm G42, New York Times reports

Reuters · 1y ago

Microsoft to invest $1.5 bln in Emirati AI firm G42, New York Times reports

Microsoft plans to invest $1.5 billion in G42, an AI firm in the UAE, according to the New York Times. The partnership will involve G42 using Microsoft's cloud services and adhering to a security arrangement negotiated with the US government. This move comes as G42 divests from Chinese investments and removes Chinese hardware from its operations. The agreement also includes protections for AI products and Microsoft President, Brad Smith, will take a seat on G42's board. Neither Microsoft nor G42 have commented on the investment.

Microsoft's $1.5B check for G42 shows growing US-China rift

TechCrunch · 1y ago

Microsoft's $1.5B check for G42 shows growing US-China rift

Microsoft has announced a $1.5 billion investment in G42, an Abu Dhabi-based artificial intelligence company. The funding will give Microsoft a minority stake in G42 and a seat on the board of directors. The move comes as the UAE seeks to position itself as a global leader in AI and draws closer to China, causing concerns for US politicians. The deal highlights the strategic positioning of both countries in the midst of rising geopolitical tensions. The partnership also grants Microsoft extensive market access to the region and the opportunity to implement its AI and Azure solutions across various industries.

US lawmaker calls for probe of UAE tech firm over China ties

Economic Times

Economic Times · 1y ago

US lawmaker calls for probe of UAE tech firm over China ties

A US lawmaker has requested the consideration of trade restrictions on United Arab Emirates-based AI firm Group 42 Holdings (G42) due to its connections with China. Mike Gallagher, the Republican chair of the House Select Committee on the Chinese Communist Party, expressed concerns about G42's business relationships with Chinese military companies and blacklisted entities, such as Huawei. He has urged the Department of Commerce to evaluate whether G42 and its subsidiaries should be added to a trade blacklist.

Microsoft to invest $1.5 billion in UAE AI firm

Livemint

Livemint · 1y ago

Microsoft to invest $1.5 billion in UAE AI firm

Microsoft Corp. has announced a $1.5 billion investment in G42, a technology company backed by the United Arab Emirates (UAE). This partnership includes an intergovernmental agreement to ensure the security of artificial intelligence (AI) as the US and China compete for influence in the Gulf. The deal signifies a pivot for the UAE towards Washington, as its ties with China have strained relations with the US in recent years. The partnership aims to develop a skilled AI workforce in the UAE and create a $1 billion fund for developers.

Abu Dhabi-based G42 to double data centre capacity in India

Economic Times

Economic Times · 11m ago

Abu Dhabi-based G42 to double data centre capacity in India

Abu Dhabi-based company G42 aims to build two gigawatt AI-ready data centres in India, doubling the nation's existing capacity. The move is part of a memorandum of understanding (MoU) between the UAE and Indian governments to co-develop sovereign AI. G42 will invest in the project and has recently unveiled NANDA, a AI model trained on 2.13 trillion tokens in Hindi and English. G42 has partnerships with major technology firms and is backed by Emirati sovereign wealth fund Mubadala. The company plans to establish a unique end-to-end sovereign AI ecosystem in India.

US Senator says TikTok divestiture deadline could be extended to one year

Economic Times

Economic Times · 1y ago

US Senator says TikTok divestiture deadline could be extended to one year

Lawmakers in the US may extend the deadline for TikTok's parent company, ByteDance, to divest the video-sharing app. The US House of Representatives has already voted in favor of giving ByteDance about six months to sell off TikTok's US assets or face a ban. Senate Commerce Committee chair Maria Cantwell suggested extending the deadline to one year, a move that could put the potential ban into 2025. The concerns over TikTok stem from worries about national security and data privacy, but TikTok denies any wrongdoing and maintains it has never shared US user data with China.

Microsoft’s UAE deal could transfer key US chips and AI technology abroad

VCCircle

VCCircle · 1y ago

Microsoft’s UAE deal could transfer key US chips and AI technology abroad

Microsoft's deal with UAE-backed AI firm G42 could involve the transfer of advanced chips and tools, raising national security concerns. The deal may move into a second phase where key components of AI technology, such as model weights, are exported. US officials believe that AI systems pose a significant national security risk due to potential misuse by foreign entities. The deal would require approval from the US Department of Commerce, but concerns have been raised regarding the lack of transparency and safeguards protecting sensitive US-origin technology. Legislation has been advanced to give US officials more power in restricting AI technology exports.

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