US lawmakers raise worries about China in Microsoft deal with Emirati AI firm

Republican lawmakers have demanded an investigation into Microsoft’s $1.5 billion investment into UAE AI firm G42 over its ties with China.

Republican lawmakers asked the Biden administration for an intelligence assessment of Microsoft's $1.5 billion investment in UAE-based artificial intelligence firm G42 over concerns about transfer of sensitive technology and G42's historic ties to China.

Representative Michael McCaul, chair of the House Foreign Affairs Committee, and John Moolenaar, leader of the Select Committee on China, made the request for a briefing in a letter dated Wednesday 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 U.S. adversaries like China.

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"We remain deeply concerned by attempts to move quickly to advance a partnership that involves the unprecedented transfer of highly sensitive, U.S.-origin technology, without congressional consultation or clearly defined regulations in place," the lawmakers said in the letter.

They asked for a U.S. assessment of G42's ties to China's Communist Party, military and government before the Microsoft deal advances. They cited a recent visit by UAE President Sheikh Mohamed bin Zayed Al Nahyan to Beijing to discuss, according to Chinese state news agency Xinhua, cooperation in AI.