US Lawmakers Press for Intel Review of China Links in Microsoft’s $1.5B UAE AI Deal

Republican lawmakers have asked for an intelligence review of Microsoft's $1.5 billion investment in the UAE's AI firm G42 due to concerns about China's potential influence and technology transfer risks.

Lawmakers Call for Intelligence Review

Reuters reports that Republican lawmakers requested an intelligence review from the Biden administration regarding Microsoft's $1.5 billion investment in the UAE-based artificial intelligence startup G42.

Concerned about the potential transfer of sensitive technology and G42's historical ties to China, the lawmakers cited G42's historical ties to China as reasons for their request.

Committee chair Michael McCaul of the House Foreign Affairs Committee and Select Committee on China leader John Moolenaar wrote to White House national security advisor Jake Sullivan on Wednesday, according to the committees, requesting a briefing.

Before moving on to the second phase, which involves the transfer of export-restricted semiconductor chips and model weights—sophisticated data that enhances an AI model's capacity to mimic human reasoning—the Republicans have stated their want for the briefing on the arrangement, which was announced in April.

Concerns Over Technology Transfer to China

MSN shares that amid rising concerns that businesses like G42 may share valuable technology with U.S. rivals like China, the letter reflects a rising tide of worry about the absence of laws regarding the export of sensitive AI models.

"We remain deeply concerned by attempts to move quickly to advance a partnership that involves the unprecedented transfer of highly sensitive, U.S.-origin technology, without congressional consultation or clearly defined regulations in place," according to the letter from the legislators.

They want the United States to evaluate G42's links to the Chinese government, military, and Communist Party before the Microsoft agreement goes forward. They referenced Xinhua, the Chinese state news agency, which states that President Sheikh Mohamed bin Zayed Al Nahyan of the United Arab Emirates recently visited Beijing to explore AI cooperation.

Microsoft Ensures Collaboration with U.S. Government

A spokesperson for Microsoft stated that the company is in tight collaboration with the federal government and that "U.S. national security will continue to be a principal priority."

A spokeswoman for the White House National Security Council explained that the government has been keeping lawmakers apprised of the dangers posed by digital infrastructure through frequent interaction. "National Security Advisor Jake Sullivan looks forward to continuing this engagement, including with Chair McCaul," according to the source.

Neither G42 nor the UAE embassy's spokespeople returned calls seeking comment.

The Chinese Embassy pointed out, "The U.S. has repeatedly undermined cooperation between Chinese companies and other countries on trumped-up security grounds."