Microsoft’s US$1.5 billion investment in G42, an Emirati AI firm, triggered initial scrutiny from US lawmakers concerned about potential technology transfer to China. The approved export license includes strict restrictions preventing access by personnel from countries under US arms embargoes.
The deal requires Microsoft to block access to its UAE facility for individuals from nations on the US Bureau of Industry and Security’s Entity List, specifically targeting personnel connected to the Chinese government or organizations headquartered in China.
G42, partially owned by Abu Dhabi’s sovereign wealth fund and the UAE’s ruling family, has emphasized its commitment to working with US partners and adhering to AI development standards.
The company’s chairman, Sheikh Tahnoon bin Zayed Al Nahyan, serves as the UAE’s national security advisor. G42 CEO Peng Xiao has previously played down US concerns that their chips would fall into the hands of a technological rival.
The Biden administration has increasingly focused on managing national security risks associated with AI systems, including potential applications in developing advanced weapons technologies.
