Republicans in Congress Call for Investigation into Microsoft-G42 Deal amid National Security Concerns

Republican members of Congress are urging the Biden administration to investigate a major deal between Microsoft and G42, an AI firm based in the United Arab Emirates (UAE), raising concerns about the potential transfer of sensitive technology and G42’s ties to China.

Lawmakers led by Michael McCaul, chair of the House Foreign Affairs Committee, are worried about the export of cutting-edge technology like special chips and AI models that could enhance an AI’s capabilities. They have sent a letter to the White House requesting a security review before the deal progresses, emphasizing the need to protect US national security interests.

Specifically, the lawmakers are seeking an assessment of G42’s connections to China, including its government and military, following a recent meeting between UAE and Chinese officials where AI cooperation was discussed.

The deal, announced in April, aims to establish the UAE as a global AI hub, with G42 using Microsoft’s Azure cloud platform and collaborating on advanced AI services. While initial details did not mention high-end chip transfers, reports suggest Microsoft might export restricted AI chips in a later phase, a possibility acknowledged by Microsoft.

Additionally, concerns have been raised about G42’s past involvement in digital surveillance and its connections to a controversial Emirati cybersecurity firm, adding to the scrutiny surrounding the deal.

This is not the first time US officials have expressed worries about G42, as earlier concerns were raised about its business ties with Chinese entities, including military and intelligence groups. The broader anxieties reflect US concerns about China’s growing influence in the Middle East, and lawmakers are keen to ensure that the deal does not inadvertently benefit China’s AI ambitions.

The push for a security review highlights the complexities of international deals in the technology sector, especially when it comes to sensitive AI technology and potential geopolitical implications. Stay tuned for updates on the outcome of the investigation and any further developments in this story.