The US government has granted an export license for advanced artificial intelligence (AI) chips to a Microsoft-operated facility in the United Arab Emirates (UAE), according to Axios, citing two sources familiar with the matter. This approval is a key step in Microsoft’s partnership with the UAE-based AI company G42, which received a $1.5 billion investment from Microsoft earlier this year.
The move comes amid growing scrutiny over potential technology transfers, particularly to China. Microsoft’s investment in G42 includes a minority stake and a board seat, as part of a broader strategy to leverage the company’s cloud services for G42’s AI applications.
However, the collaboration has raised concerns among US lawmakers, who have called for a closer examination of G42’s ties to the Chinese Communist Party, military, and government. These concerns center around the potential risks of US technology inadvertently reaching adversarial states.
The export license granted to Microsoft includes several conditions aimed at restricting access to the UAE facility. Notably, individuals from countries subject to US arms embargoes or those on the US Bureau of Industry and Security’s restricted list will be barred from the facility. This includes individuals with ties to the Chinese government or Chinese-based organizations.
The license also prohibits access for individuals sanctioned by the US Treasury Department, a third source with knowledge of the situation told Axios.
US officials have repeatedly warned that AI technologies, if misused, could pose national security threats, particularly by enabling the development of advanced weapons. In response, the US government has ramped up oversight of AI technology. In October 2024, the Biden administration introduced new regulations requiring major AI system manufacturers to disclose technical details to the US government.
Earlier in 2024, G42 reaffirmed its commitment to following AI development and deployment standards in collaboration with US partners and the UAE government, according to Reuters.
G42 is backed by Abu Dhabi’s sovereign wealth fund, Mubadala Investment Company, and US private equity firm Silver Lake, both of which hold stakes in the company.
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