The White House praised Microsoft's $1.5 billion investment in G42, emphasizing the positive impact of ending relations with Huawei on AI security.
White House Sees Positive Shift in UAE Tech Alliances
According to Reuters, a White House source stated on Monday that the $1.5 billion investment by Microsoft in G42, an AI business based in the United Arab Emirates, was "generally a positive development" since it compelled the corporation to cut relations with Huawei, a Chinese tech giant.
According to White House tech advisor Tarun Chhabra, "we have an interest in changing that picture" in countries like the UAE, where G42 and Huawei were tightly affiliated.
"The effort to work with Microsoft as an alternative to Huawei is generally a positive development and one that we want to encourage," Chhabra said at a Washington, D.C. event organized by the Council on Foreign Relations.
Huawei's Eavesdropping Concerns Prompt U.S. Action
Concerned that the Chinese telecom equipment firm Huawei would eavesdrop on its clients and transmit the information to Beijing, Washington has sought to persuade its allies to remove Huawei from their networks for a long time.
The United States and China are engaged in a fierce struggle to dominate artificial intelligence, and as the competition intensifies, the Middle East has also begun to play a more significant role in the technology war between the two countries.
G42 and Microsoft Assure Cloud Security in New Deal
Both organizations assured the governments of the United States and the United Arab Emirates that their respective cloud services would be secure, and G42 agreed to use Microsoft in April as part of the agreement to host its artificial intelligence applications.
The New York Times (via Yahoo Finance) said that the Emirati company agreed to remove Huawei and other Chinese hardware from its operations as part of the deal, which included a number of safeguards for the AI products provided with G42.
Concerning the possibility of export limitations on AI software, Chhabra stated that the Biden administration was keeping a close eye on its implementation.
"We are keeping a close eye on the latest models as they are released, whether they are open sourced, whether they are proprietary," according to him. "We want to know what are their capabilities."
The export of proprietary or closed source AI models—those whose software and the data used to train it are kept secret—was reportedly being considered by the Commerce Department in a May Reuters story.
Countries identified as potential smuggling routes for powerful AI chips developed in the United States are already subject to stringent shipping restrictions.
Photo: Microsoft Bing


Nasdaq Proposes Fast-Track Rule to Accelerate Index Inclusion for Major New Listings
SpaceX Pushes for Early Stock Index Inclusion Ahead of Potential Record-Breaking IPO
TSMC Eyes 3nm Chip Production in Japan with $17 Billion Kumamoto Investment
Sam Altman Reaffirms OpenAI’s Long-Term Commitment to NVIDIA Amid Chip Report
Global PC Makers Eye Chinese Memory Chip Suppliers Amid Ongoing Supply Crunch
Sony Q3 Profit Jumps on Gaming and Image Sensors, Full-Year Outlook Raised
SpaceX Prioritizes Moon Mission Before Mars as Starship Development Accelerates
Tencent Shares Slide After WeChat Restricts YuanBao AI Promotional Links
Jack Lang Resigns as Head of Arab World Institute Amid Epstein Controversy
Once Upon a Farm Raises Nearly $198 Million in IPO, Valued at Over $724 Million
Pentagon Ends Military Education Programs With Harvard University
Japan Election 2026: Sanae Takaichi Poised for Landslide Win Despite Record Snowfall
Jensen Huang Urges Taiwan Suppliers to Boost AI Chip Production Amid Surging Demand
U.S. to Begin Paying UN Dues as Financial Crisis Spurs Push for Reforms
Nvidia Nears $20 Billion OpenAI Investment as AI Funding Race Intensifies
American Airlines CEO to Meet Pilots Union Amid Storm Response and Financial Concerns 



