US Approves AI Chips for UAE, Tightens Microsoft Deal Restrictions Over China Concerns, Axios Reports

The US government has cleared AI chip exports to a UAE Microsoft facility, adding restrictions to address concerns about ties to China. The G42 partnership mandates compliance with national security safeguards, Axios reports.

US Greenlights Microsoft’s AI Chip Exports to UAE Facility

According to two sources familiar with the matter, Axios reported on Saturday that the transfer of advanced AI processors to an Emirates facility run by Microsoft has been greenlit by the US government. This is all part of Microsoft's much-maligned collaboration with the Emirati AI business G42.

G42 received a minority share and a board seat from Microsoft earlier this year, after the software giant spent $1.5 billion. G42 would host its artificial intelligence apps on Microsoft's cloud as per the terms of the agreement.

US Lawmakers Push for China Risk Review

U.S. senators voiced fear that G42 could transfer sophisticated AI technology from the United States to China, which led to the acquisition being investigated. They want the United States to evaluate G42's links to the Chinese government, military, and Communist Party before the Microsoft agreement goes forward.

Microsoft, the United States Department of Commerce, and G42 all took too long to react to Reuters' requests for comment.

According to the Axios story, Microsoft is obligated to block access to its UAE facility for individuals from countries subject to U.S. arms embargoes or the U.S. Bureau of Industry and Security's Entity List, as stated in the authorized export license.

Stringent Export Restrictions Enforced

People currently residing in China, members of the Chinese government, and employees of any company with a Chinese headquarters are all subject to the limitations, according to the article.

The United States government has expressed concern that AI systems may compromise national security by facilitating the development of CBRN weapons and other similar technologies. In October, the creators of the biggest AI systems were compelled by the Biden administration to disclose information about them to the United States government.

G42’s Pledge for AI Compliance

Per Investing.com, amid worries about its ties to China, G42 earlier this year stated that it was actively collaborating with U.S. partners and the UAE government to adhere to AI development and deployment requirements.

G42 has investors including the United Arab Emirates royal family, Mubadala Investment Company, the Abu Dhabi sovereign wealth fund, and Silver Lake, a private equity firm based in the United States. One of the company's directors, Sheikh Tahnoon bin Zayed Al Nahyan, is also the president's brother and national security adviser to the United Arab Emirates.