US lawmakers worry over China link in Microsoft deal with UAE firm

Fears mount over sharing of AI technology and deepening Chinese influence in Middle East

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Republican lawmakers asked the Biden administration for an intelligence assessment of Microsoft’s US$1.5 billion (S$2 billion) investment in United Arab Emirates-based artificial intelligence (AI) firm G42, over concerns about the transfer of sensitive technology and G42’s historic ties to China.

Representative Michael McCaul, chair of the House Foreign Affairs Committee, and Mr John Moolenaar, leader of the Select Committee on China, made the request for a briefing in a letter dated July 10 to White House national security adviser Jake Sullivan, the committees said.

The Republicans said they want the briefing on the deal, announced in April, before it advances to a second phase involving the transfer of export-restricted semiconductor chips and model weights, sophisticated data that improves an AI model’s ability to emulate human reasoning.

The letter is a sign of growing concern about the lack of regulations around the export of sensitive AI models, as fears mount that companies like G42 might share the prized technology with US adversaries like China.