US lawmakers question Microsoft’s $1.5B AI investment

Republican lawmakers have requested an intelligence assessment from the Biden administration regarding Microsoft’s $1.5 billion investment in UAE-based AI firm G42. Concerns have been raised over the potential transfer of sensitive technology and G42’s historical ties to China. Representative Michael McCaul and John Moolenaar, leaders of key committees, have called for a briefing with White House national security adviser Jake Sullivan before the deal progresses.

The lawmakers highlighted the need for clear regulations on exporting sensitive AI models, fearing that such technology might be shared with adversaries like China. They have requested an assessment of G42’s connections to China’s Communist Party and government. The probe follows a recent visit by UAE President Sheikh Mohamed bin Zayed Al Nahyan to Beijing, where AI cooperation was discussed.

Microsoft has stated that it works closely with the US government to prioritise national security. The White House National Security Council confirmed ongoing dialogue with lawmakers to address the risks associated with digital infrastructure. Meanwhile, G42 and the UAE embassy have not commented on the matter.

Why does this matter?

Concerns about China’s influence in the Middle East persist despite G42’s claim that it divested Chinese investments and accepted US constraints to collaborate with American firms. The New York Times reported that the Microsoft deal, influenced by the Biden administration, aimed to limit China’s technological reach. The Commerce Department is also considering rules to restrict the export of proprietary AI technology to ensure national security.