Licence requires Microsoft to prevent access to its facility by nations under American arms embargoes
08 December 2024 - 14:58
byDevika Nair
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Bengaluru — The US government has approved the export of advanced artificial intelligence chips to a Microsoft-operated facility in the UAE, Axios news website reported on Saturday.
The deal is part of the company’s highly-scrutinised partnership with Emirati AI firm G42, according to two people familiar with the deal.
Microsoft invested $1.5bn in G42 earlier this year, giving the US company a minority stake and a board seat. As part of the deal, G42 would use Microsoft’s cloud services to run its AI applications.
The deal, however, was scrutinised after US legislators raised concerns that G42 could transfer powerful US AI technology to China. They asked for a US assessment of G42’s ties to the Chinese Communist Party, military and government before the Microsoft deal advances.
The US Commerce Department and G42 did not immediately respond to Reuters’ requests for comment. Microsoft declined to comment on the report.
The approved export licence requires Microsoft to prevent access to its facility in the UAE by personnel who are from nations under US arms embargoes or who are on the US Bureau of Industry and Security’s Entity List, the Axios report said.
The restrictions cover people physically in China, the Chinese government or personnel working for any organisation headquartered in China, the report added.
US officials have said that AI systems could pose national security risks, including by making it easier to engineer chemical, biological and nuclear weapons. The Biden administration in October required the makers of the largest AI systems to share details about them with the US government.
G42 earlier this year said it was actively working with US partners and the UAE’s government to comply with AI development and deployment standards, amid concerns about its ties to China.
Abu Dhabi 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 chairperson, Sheikh Tahnoon bin Zayed Al Nahyan, is the UAE’s national security adviser and the brother of the UAE’s president.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
US clears export of advanced AI chips to UAE
Licence requires Microsoft to prevent access to its facility by nations under American arms embargoes
Bengaluru — The US government has approved the export of advanced artificial intelligence chips to a Microsoft-operated facility in the UAE, Axios news website reported on Saturday.
The deal is part of the company’s highly-scrutinised partnership with Emirati AI firm G42, according to two people familiar with the deal.
Microsoft invested $1.5bn in G42 earlier this year, giving the US company a minority stake and a board seat. As part of the deal, G42 would use Microsoft’s cloud services to run its AI applications.
The deal, however, was scrutinised after US legislators raised concerns that G42 could transfer powerful US AI technology to China. They asked for a US assessment of G42’s ties to the Chinese Communist Party, military and government before the Microsoft deal advances.
The US Commerce Department and G42 did not immediately respond to Reuters’ requests for comment. Microsoft declined to comment on the report.
The approved export licence requires Microsoft to prevent access to its facility in the UAE by personnel who are from nations under US arms embargoes or who are on the US Bureau of Industry and Security’s Entity List, the Axios report said.
The restrictions cover people physically in China, the Chinese government or personnel working for any organisation headquartered in China, the report added.
US officials have said that AI systems could pose national security risks, including by making it easier to engineer chemical, biological and nuclear weapons. The Biden administration in October required the makers of the largest AI systems to share details about them with the US government.
G42 earlier this year said it was actively working with US partners and the UAE’s government to comply with AI development and deployment standards, amid concerns about its ties to China.
Abu Dhabi 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 chairperson, Sheikh Tahnoon bin Zayed Al Nahyan, is the UAE’s national security adviser and the brother of the UAE’s president.
Reuters
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