U.S. Republican lawmakers are seeking a probe into Microsoft’s $1.5 billion investment in artificial intelligence firm G42, citing concerns about the transfer of advanced technology and possible ties the Abu Dhabi-based company may have with China.
Representatives Michael McCaul and John Moolenaar, chairmen of the House Foreign Affairs Committee and Select Committee on the Chinese Communist Party, respectively, said in a letter to White House national security adviser Jake Sullivan that the deal “deserves continued special scrutiny” as one of the “most consequential investments by a U.S. technology firm in the Middle East in decades.”
They said they were 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 clear regulations in place.
The letter, released publicly on Thursday, highlighted recent talks between U.A.E. President Sheikh Mohamed bin Zayed Al Nahyan and Chinese President Xi Jinping that Chinese state media said included discussions about cooperation on AI.
The lawmakers requested that the National Intelligence Council assess any ties between G42 and China, as well as the risk of transfer of sensitive U.S. technology to China.
Microsoft and G42 didn’t immediately reply to requests for comment.
The investment, announced in April, included Microsoft President Brad Smith joining the board of G42 and the Abu Dhabi company using Microsoft’s cloud services for its AI applications.
The deal, coming at a time Washington and Beijing compete for influence in the Gulf, included an “intergovernmental assurance agreement” that the companies said was developed in consultation with the U.S. and U.A.E. governments to ensure AI security.
Source: https://www.livemint.com/news/us-lawmakers-seek-probe-of-microsoft-s-1-5b-deal-with-abu-dhabi-ai-firm-11720765042832.html