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Is Microsoft’s $1.5 Billion AI Deal with UAE a Risky Gamble for U.S. Security?

Daniel Kim Views  

Microsoft headquarters / Yonhap News
Microsoft headquarters / Yonhap News

Microsoft has acquired a minority stake and a board seat in the American company after investing $1.5 billion earlier this year in G42, a UAE-based AI firm.

On Saturday, well-informed sources revealed that the U.S. government had approved the export of cutting-edge AI chips to Microsoft’s operational facility in the UAE. This approval is part of a carefully vetted partnership with G42.

G42 plans to utilize Microsoft’s cloud services to run AI applications as part of the agreement.

However, the deal has faced intense scrutiny after U.S. lawmakers raised concerns about the potential transfer of advanced American AI technology to China through G42.

Lawmakers have called for a thorough evaluation of G42’s connections to the Chinese Communist Party, military, and government before proceeding with the partnership with Microsoft.

G42 / G42
G42 / G42

U.S. officials have warned that AI systems could pose significant national security risks, including enabling the development of chemical, biological, and nuclear weapons.

In response, the Biden administration required companies developing large-scale AI systems to submit detailed information to the U.S. government by October.

The approved export license for Microsoft stipulates that its UAE facilities must restrict access to individuals from countries under U.S. weapons embargoes or those listed by the U.S. Bureau of Industry and Security. This restriction explicitly targets employees associated with China-based organizations, the Chinese government, or China-affiliated entities.

Earlier this year, G42 emphasized its active collaboration with U.S. partners and the UAE government to comply with AI development and deployment standards, aiming to address concerns about its potential ties to China.

Daniel Kim
content@viewusglobal.com

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