Republican Lawmakers Concerned about Microsoft’s Investment in UAE-based AI Firm G42

Republican lawmakers have raised concerns about Microsoft’s $1.5 billion investment in UAE-based artificial intelligence firm G42, calling for an intelligence assessment over worries of technology transfer and ties to China.

Representative Michael McCaul and John Moolenaar requested a briefing from the Biden administration before the deal advances to a phase involving the transfer of export-restricted semiconductor chips and sophisticated data that improves AI models’ capabilities.

The lawmakers highlighted fears that companies like G42 could potentially share sensitive technology with U.S. adversaries, such as China, noting the lack of regulations around the export of AI models.

Microsoft stated it is prioritizing U.S. national security and working closely with the government on the matter. Meanwhile, G42, the White House, and the UAE embassy have yet to respond to requests for comment.

The concerns come as the U.S. deepens its worries about China’s influence in the Middle East and the UAE, with G42 emphasizing its divestment from investments in China to comply with U.S. constraints.

The deal between Microsoft and G42 has been scrutinized by lawmakers and the media, with Commerce Secretary Gina Raimondo clarifying that it does not authorize the transfer of AI models or processors to develop AI applications for G42.

As the debate continues, the Commerce Department is reportedly considering rules to restrict the export of proprietary AI technology, highlighting the urgent need for oversight in the industry.