(Reuters) – The U.S. government has approved the export of advanced artificial intelligence chips to a Microsoft-operated facility in the United Arab Emirates as part of the company’s closely watched partnership with Emirati artificial intelligence company G42, Axios reported Saturday, citing two people. familiar with the agreement.
Microsoft invested $1.5 billion in G42 earlier this year, giving the US company a minority stake and a seat on the board. Under the deal, G42 would use Microsoft’s cloud services to run its AI applications.
The deal, however, came under scrutiny after US lawmakers raised concerns that the G42 could transfer powerful US AI technology to China. They asked the United States for an assessment of the G42’s ties to the Chinese Communist Party, military and government before the Microsoft deal moves forward.
The U.S. Commerce Department and the G42 did not immediately respond to Reuters’ requests for comment. Microsoft declined to comment on the report.
The approved export license requires Microsoft to prevent access to its facilities in the United Arab Emirates by personnel from countries subject to a U.S. arms embargo or on the U.S. Office of the Entity List. industry and security, says the Axios report.
The restrictions cover people physically in China, the Chinese government or personnel working for any organization headquartered in China, the report added.
U.S. officials have said AI systems could pose national security risks, including by facilitating the design of chemical, biological and nuclear weapons. In October, the Biden administration asked makers of the largest AI systems to share details about them with the U.S. government.
The G42 said earlier this year that it was actively working with its US partners and the UAE government to comply with standards for AI development and deployment, amid concerns over its ties to China .
Abu Dhabi’s sovereign wealth fund Mubadala Investment Company, the UAE’s ruling family and US private equity firm Silver Lake hold stakes in G42. The company’s chairman, Sheikh Tahnoon bin Zayed Al Nahyan, is the national security adviser of the UAE and the brother of the President of the UAE.
(Reporting by Devika Nair in Bangalore; editing by Paul Simao)