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Republican lawmakers are pressing the Biden administration for an intelligence briefing on Microsoft’s $1.5 billion investment in UAE-based artificial intelligence firm G42. Their concerns revolve around the transfer of sensitive technology and G42’s ties to China.
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In a <a href="https://www.reuters.com/technology/artificial-intelligence/republican-lawmakers-deeply-concerned-over-microsoft-g42-ai-deal-letter-says-2024-07-11/" rel="noopener noreferrer nofollow" target="_blank">letter</a> to White House National Security Advisor Jake Sullivan, Congressman Michael McCaul and John Moolenaar demanded a briefing before the deal would be approved. McCaul is the chair of the House Committee on Foreign Affairs, while Moolenaar chairs the Select Committee on the Modernization of Congress.&nbsp;
<h3 class="wp-block-heading" id="republicans-raise-concerns-about-technology-transfer">Republicans raise concerns about technology transfer</h3>
They stressed the importance of consultation with Congress and the need for proper rules regarding the transfer of technology of very sensitive US origin.&nbsp; The lawmakers further expressed their concern over the rapid growth of the partnership, congress’s lack of involvement, and the absence of guidelines.&nbsp;
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 “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.”&nbsp; <cite>The lawmakers’ letter&nbsp;</cite>
</blockquote>
The US government is now proposing new export restrictions on many parts of AI technology as it is worried that such technology could be used by foes. US authorities are aware of AI as a technology that can change the approach to warfare and spying and, therefore, have started a competition to gain the lead in this area. The UAE and China have a strong scientific research relationship, and this creates other concerns as well.&nbsp;
The letter from McCaul and Moolenaar asked for an intelligence briefing from the NIC on whether G42 has links with the Chinese Communist Party, the People’s Liberation Army, or any part of China’s apparatus. They emphasized this as the assessment should be conducted prior to the further development of the partnership due to China’s advanced use of generative AI.&nbsp;
<h3 class="wp-block-heading" id="legislators-probe-g42-s-past-partnerships">Legislators probe G42’s past partnerships</h3>
The committee also expressed concerns regarding the technology transfer and referred to G42’s history of digital surveillance as another issue.G42 has worked closely with Huawei, which the US government has cited as a tool used by the Chinese government for surveillance.
A lawmaker with the Select Committee on China noted, “G42 has partnered with Huawei extensively, which the U.S. position is basically that Huawei technology, wherever it’s located, amounts to surveillance on behalf of the PRC.”
The staffer also pointed to relations between G42 personnel and the Emirati cyber firm DarkMatter.&nbsp;Given the growing ties between the UAE and China across different sectors, it is crucial to prevent the transfer of sensitive technology to undesirable parties

Republican lawmakers seek intelligence briefing on Microsoft’s $1.5 billion investment in UAE AI firm

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