Microsoft’s UAE Partnership Could Transfer Key U.S. Chips and AI Technology Abroad

Fri May 24 2024
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WASHINGTON: Microsoft President Brad Smith has said that the tech company’s high-profile partnership with the United Arab Emirates-backed AI firm G42 might eventually involve transferring advanced chips and tools.

Smith said that the sales agreement, with many details being reported here for the first time, could advance to a second phase. This phase could involve exporting crucial AI technology components, such as model weights, which are essential for determining the power of AI systems. However, Smith noted that there is no firm timeline for this second phase.

US officials have expressed concerns that AI systems could pose national security risks by potentially facilitating the creation of chemical, biological, and nuclear weapons. In October, the Biden administration mandated that creators of the largest AI systems share details about them with the US government. The deal’s progression would require approval from the US Department of Commerce. Microsoft executives emphasized that the agreement includes safeguards to protect Microsoft’s technology.  Microsoft executives stated that the company supports a discussion on a new legal framework for AI technology transfer and that the deal with G42 mandates the UAE firm to comply with evolving US regulations. “Fundamentally, what we’re focused on is trying to ensure that American technology can move around the world safely and securely,” Smith said.



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