The U.S. government has given the green light for the export of cutting-edge artificial intelligence (AI) chips to a Microsoft-operated facility in the United Arab Emirates (UAE), according to Axios.
This move is a key component of Microsoft's collaboration with Emirati AI firm G42. Earlier this year, Microsoft invested $1.5 billion in G42, securing a minority stake and a seat on the board. Under this agreement, G42 will leverage Microsoft's cloud services to power its AI applications.
However, the deal has raised concerns among U.S. lawmakers who worry about the potential transfer of sensitive American technology to foreign entities. In response, the U.S. Commerce Department has attached specific conditions to the export license. These conditions require Microsoft to limit access to the UAE facility for individuals from nations that are under U.S. arms embargoes or listed on the U.S. Entity List.
The approval is part of a broader initiative by the U.S. to regulate advanced AI technologies, which are considered national security risks. Areas of particular concern include the development of chemical, biological, and nuclear weapons. U.S. officials are intensifying oversight of AI systems, mandating that manufacturers of large AI models disclose details about their technologies to the government.
G42, backed by the UAE's Mubadala Investment Company, the ruling family of the UAE, and U.S. private equity firm Silver Lake, has pledged to adhere to international standards for the development and deployment of AI. The company's chairman, Sheikh Tahnoon bin Zayed Al Nahyan, serves as the UAE's national security advisor and is the brother of the UAE's president.
Reference(s):
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