U.S. Approves Export Of Advanced AI Chips To UAE Under Microsoft Deal

The US 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 its partnership with the Emirati AI firm G42, Axios reported.

The deal faced intense scrutiny after US lawmakers expressed concerns about the potential transfer of US AI technology to China through G42. I Photo: UAE Embassy

Microsoft invested $1.5 billion in G42 earlier this year, acquiring a minority stake and a board seat. Under the agreement, G42 would use Microsoft’s cloud services to power its AI applications.

However, the deal faced intense scrutiny after US lawmakers expressed concerns about the potential transfer of US AI technology to China through G42.

They requested a US government assessment of G42's links to the Chinese Communist Party, military, and government.

The approved export license comes with strict conditions. Microsoft must prevent individuals from countries under US arms embargoes or on the US Bureau of Industry and Security's Entity List from accessing the UAE facility.

This includes personnel physically located in China, the Chinese government, or those affiliated with organizations headquartered in China.

US officials have emphasized the potential national security risks posed by AI systems, particularly in enabling the development of chemical, biological, and nuclear weapons. In October, the Biden administration mandated AI system developers to disclose information about their technologies to the government.