In This Article: (Reuters) - The U. S. government has authorized the export of advanced AI chips to a Microsoft-operated facility in the UAE, as part of Microsoft's partnership with Emirati AI firm G42, Axios reported, citing sources familiar with the deal. Earlier this year, Microsoft invested $1. 5 billion in G42, securing a minority stake and a board seat. Under this agreement, G42 will utilize Microsoft's cloud services to run its AI applications. However, the deal faced scrutiny after U. S. lawmakers expressed concerns about G42 potentially transferring U. S. AI technology to China. They requested an assessment of G42's connections to the Chinese Communist Party, military, and government before allowing the deal to proceed. The U. S. Commerce Department, Microsoft, and G42 did not immediately respond to requests for comment from Reuters. The export license stipulates that Microsoft must block access to its UAE facility by individuals from nations under U. S. arms embargoes or listed on the U. S.

Bureau of Industry and Security's Entity List, according to the Axios report. The restrictions apply to people physically in China, the Chinese government, or personnel working for any Chinese-headquartered organization, the report added. U. S. officials have warned that AI systems could pose national security threats, potentially facilitating the creation of chemical, biological, and nuclear weapons. In October, the Biden administration mandated that makers of the largest AI systems share information about them with the U. S. government. Earlier this year, G42 stated it was collaborating with U. S. partners and the UAE's government to meet AI development and deployment standards, amid concerns over its links to China. The Abu Dhabi sovereign wealth fund Mubadala Investment Company, the UAE's ruling family, and U. S. private equity firm Silver Lake are stakeholders in G42. The company's chairman, Sheikh Tahnoon bin Zayed Al Nahyan, serves as the UAE's national security advisor and is the brother of the UAE’s president. (Reported by Devika Nair in Bengaluru; Edited by Paul Simao) Recommended Stories