U.S. Approves Export of Advanced AI Chips to Microsoft-Operated Facility in the United Arab Emirates
The U.S. government has approved the export of advanced artificial intelligence (AI) chips to a Microsoft-operated facility in the United Arab Emirates (UAE) as part of the company’s partnership with Emirati AI firm G42. This move comes after Microsoft invested $1.5 billion in G42, giving the U.S. company a minority stake and a board seat.
The deal was scrutinized by U.S. lawmakers, who raised concerns that G42 could transfer powerful U.S. AI technology to China. To address these concerns, the U.S. Commerce Department has imposed restrictions on the export, requiring Microsoft to prevent access to its facility by personnel from nations under U.S. arms embargoes or those on the U.S. Bureau of Industry and Security’s Entity List. This includes individuals from China, the Chinese government, or those working for organizations headquartered in China.
The sale of the AI chips is seen as a significant development in the U.S.-UAE partnership, which has been strengthened by the countries’ close economic and strategic ties. The UAE’s ruling family, Mubadala Investment Company, and U.S. private equity firm Silver Lake hold stakes in G42, while its chairman, Sheikh Tahnoon bin Zayed Al Nahyan, is the UAE’s national security advisor and the brother of the UAE’s president.
The approval of the AI chip export comes as the Biden administration has taken steps to address concerns about the potential national security risks posed by AI systems, which could be used to develop chemical, biological, and nuclear weapons. In October, the administration required the makers of the largest AI systems to share details about them with the U.S. government. G42 has stated that it is working with U.S. partners and the UAE government to comply with AI development and deployment standards.