U.S. Approves Advanced AI Chip Exports to UAE Amid Microsoft-G42 Partnership Under Scrutiny

According to informed sources, the U.S. government has approved the export of advanced artificial intelligence (AI) chips to a facility in the United Arab Emirates (UAE) operated by Microsoft. This is part of a closely watched partnership between Microsoft and UAE-based AI company G42.

Earlier this year, Microsoft invested $1.5 billion in G42, acquiring a minority stake and a seat on its board of directors. As part of the deal, G42 will utilize Microsoft’s cloud services to power its AI applications.

However, the partnership has come under scrutiny from U.S. lawmakers concerned that G42 might transfer cutting-edge American AI technology to China. They have urged the U.S. government to assess G42’s ties to the Chinese government before allowing the Microsoft deal to proceed.

The export license reportedly requires Microsoft to prevent access to its UAE facility by individuals from countries or regions under U.S. arms embargoes or listed on the U.S. Commerce Department’s Bureau of Industry and Security (BIS) Entity List.

The restrictions also extend to individuals located in China, those affiliated with the Chinese government, or those working for any organization headquartered in China.

U.S. officials have warned that AI systems pose national security risks, including the potential to facilitate the development of chemical, biological, and nuclear weapons. In October, the Biden administration mandated that leading AI system developers share detailed information about their technologies with the U.S. government.

Earlier this year, G42 announced it was actively working with U.S. partners and the UAE government to align with standards for AI development and deployment, addressing concerns over its ties to China.

G42’s shareholders include Abu Dhabi’s sovereign wealth fund Mubadala Investment Company, the UAE’s ruling family, and U.S. private equity firm Silver Lake. The company’s chairman, Sheikh Tahnoon bin Zayed Al Nahyan, is the UAE’s national security advisor and the brother of the UAE president.