White House Asked to Probe Microsoft-UAE AI Deal Over Links to China Military

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Microsoft announced an $1.5 billion investment UAE-based artificial intelligence firm G42 in April.

American lawmakers are calling for an investigation into Microsoft’s $1.5 billion investment in UAE-based artificial intelligence (AI) company G42 over concerns about the transfer of sensitive technology to China.

In a letter to White House released Thursday, Republican representatives Michael McCaul and John Moolenaar, chairmen of the House Foreign Affairs Committee and Select Committee on the Chinese Communist Party, respectively, asked for a U.S. assessment of G42’s ties to China’s Communist Party, military and government before Microsoft goes ahead with the deal.

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U.S. lawmakers demand investigation into Microsoft's $1.5 billion investment in UAE-based AI firm G42, citing concerns about technology transfer to China.
Lawmakers highlight G42's potential ties to China's government, military, and entities evading U.S. sanctions, and emphasize the need for stringent national security measures.
Microsoft announced the investment in April, with plans for G42 to use its cloud services while restricting sensitive tech transfer initially.

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Who’s Who

Microsoft: American lawmakers are urging an investigation into Microsoft's $1.5 billion investment in UAE AI company G42 due to concerns over transferring sensitive technology to China. The deal includes Microsoft President Brad Smith joining G42's board and involves Microsoft’s cloud services. Microsoft announced the investment in April and negotiations around the second phase, involving the export of U.S.-origin tech, are underway with a need for robust national security measures.

G42: G42 is a UAE-based AI company founded in 2018, chaired by UAE National Security Adviser Sheikh Tahnoon bin Zayed. It focuses on AI research, big data, and aims to become an AI superpower in the Middle East. Its CEO, Xiao Peng, has ties to China, and the company has been involved with Chinese military firms and state entities. G42 previously partnered with organizations like ByteDance, Sinopharm, and BGI Genomics.

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What Happened When

Earlier this year (2024)：: Mike Gallagher wrote to Commerce Secretary Gina Raimondo, highlighting G42's ties to China.

April 2024：: Microsoft announced the $1.5 billion investment in UAE-based AI company G42.

July 11, 2024：: Republican representatives Michael McCaul and John Moolenaar released a letter asking for a U.S. assessment of G42’s ties to China before Microsoft proceeds with the deal.

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