Republicans Call for Intel on Microsoft's $1.5B AI Investment Amid China Concerns

Republican lawmakers have requested an intelligence assessment from the Biden administration regarding Microsoft's $1.5 billion investment in UAE-based AI firm G42. They are concerned about possible transfer of sensitive technology due to G42's historical ties to China, particularly as the deal involves export-restricted chips and vital AI model data.

Republican lawmakers have demanded an intelligence assessment from the Biden administration concerning a $1.5 billion investment by Microsoft in UAE-based AI firm G42. Their concerns center around the potential transfer of sensitive technology, given G42's historical ties to China. This request was formalized in a letter to White House national security adviser Jake Sullivan.

The lawmakers emphasize the urgency of reviewing the deal, which was announced in April, before it advances to a phase involving export-restricted semiconductor chips and AI model weights. The letter highlights worries about insufficient regulations surrounding sensitive AI exports, especially as G42 could potentially share the technology with adversaries like China.

Microsoft stated it is collaborating closely with the U.S. government to prioritize national security, while the White House confirmed ongoing dialogue with lawmakers. However, G42 and the UAE embassy have yet to respond. Amid deepening concerns about China's influence in the Middle East, the House committees underline the importance of scrutinizing G42's ties to Chinese entities before moving forward with the investment.

(With inputs from agencies.)