Microsoft is restructuring its $1.5 billion partnership with an Emirati artificial intelligence company over concerns that its sensitive technology could end up in the hands of China, Politico reported Thursday.
The United Arab Emirates firm G42 has historic ties to China, according to the report.
The report comes two days after the UAE ambassador to the U.S. scuttled scheduled meetings between staffers from the House Select Committee on China and officials from G42 and Emirati government officials, Reuters reported Tuesday. G42 is overseen by the UAE's national security adviser.
Microsoft executives have informed lawmakers, executive branch agencies, and the White House of their plans to "install greater safeguards around a sensitive" part of its deal with G42, Politico reported. At issue are the advanced semiconductors, model weights, and mathematical instructions that are crucial to Microsoft's proprietary AI models that the U.S. government wants to keep away from China, according to the report.
"After we relayed national security concerns to the White House, Microsoft proactively adjusted the terms of its deal with G42 to ensure key American technology is not directly handed over to potentially problematic actors with close ties to the CCP [Chinese Communist Party]," a spokesperson for the House China panel told Politico in a statement.
G42 is attempting to build the world's fastest Arabic-language AI system akin to Open AI's ChatGPT.
Congressional staffers sought a meeting with G42 and Emirati officials during a visit July 16-19 to talk through the transfer of sophisticated chips. UAE scuttled those meetings, however, calling it a "miscommunication."
"The committee has even more concerns about the G42-Microsoft deal given the UAE refusal to meet with congressional staff to discuss these issues. As a result, expect Congress to get more involved in oversight of these negotiations," the select committee spokesperson told Reuters.
Mark Swanson ✉
Mark Swanson, a Newsmax writer and editor, has nearly three decades of experience covering news, culture and politics.
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