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Microsoft's UAE investment raises security concerns; House requests government briefing.

TraderKnows
TraderKnows
07-12

Recently, several U.S. House leaders demanded a review of Microsoft's investment in a UAE AI company.

Republican lawmakers are urging the Biden administration to conduct an intelligence assessment of Microsoft's $1.5 billion investment in UAE-based AI company G42, citing concerns over the transfer of sensitive technology and G42's historical ties with China.

House Foreign Affairs Committee Chairman Michael McCaul and Representative John Moolenaar, head of the House Select Committee on the Chinese Communist Party, made the briefing request in a letter to White House National Security Advisor Jake Sullivan. The letter, dated Wednesday, was released by the relevant committees.

The Republicans stated they want a briefing before the deal, announced in April, moves into its second phase. The second phase involves the transfer of export-restricted semiconductor chips and model weights, which can enhance AI models' ability to mimic human reasoning.

The letter highlights growing concerns over the lack of regulation on the export of sensitive AI models, fearing that companies like G42 may share these valuable technologies with U.S. adversaries such as China.

"We remain deeply concerned about the rapid advancement of cooperation involving unprecedented levels of sensitive U.S.-origin technology transfers, conducted without congressional consultation or explicit oversight," the lawmakers wrote in the letter.

They called for an assessment of G42's connections to the Chinese Communist Party, military, and government before the Microsoft deal progresses. They referenced recent reports from China's state news agency Xinhua about UAE President Sheikh Mohammed bin Zayed Al Nahyan's visit to Beijing to discuss AI cooperation.

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