US lawmakers raise worries about China in Microsoft deal with Emirati AI firm

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Republican lawmakers have requested an intelligence assessment from the Biden administration on Microsoft’s $1.5 billion investment in UAE-based AI firm G42, due to concerns about the transfer of sensitive technology and G42’s historical ties to China.

Representatives Michael McCaul and John Moolenaar emphasized the need for a briefing on the deal, which involves export-restricted semiconductor chips and model weights, before it advances further.

The letter from the lawmakers suggests growing apprehensions about the lack of regulations around exporting sensitive AI models and fears that firms like G42 might share technology with adversaries like China.

They highlighted G42’s past connections to China’s Communist Party and military, as well as a recent visit by the UAE president to Beijing to discuss AI cooperation.

The lawmakers stressed the need for congressional consultation and clearly defined regulations to prevent the transfer of highly sensitive U.S.-origin technology.

Microsoft stated its commitment to working closely with the U.S. government, ensuring national security remains a priority.

The White House National Security Council confirmed ongoing dialogue with lawmakers about the risks associated with digital infrastructure.

G42 and the UAE embassy did not comment, while the Chinese Embassy criticized the U.S. for hindering international cooperation on security grounds.

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