‘It is vital we do all we can to limit the PRC’s malign influence around the world, including in the Middle East,’ the lawmakers said.
Two House committee chairmen have requested an intelligence assessment from the
federal government over concerns that U.S. artificial intelligence (AI) technology from Microsoft’s partnership with Abu Dhabi’s Group 42 Holding Ltd. (
G42) could end up in the hands of the Chinese communist regime because of the AI firm’s alleged ties with Beijing.
The concerns were raised in a
letter dated July 10 from Rep. John Moolenaar (R-Mich.), chairman of the House Select Committee on the Chinese Communist Party (CCP), and Rep. Michael McCaul (R-Texas), chairman of the House Foreign Affairs Committee, to national security adviser Jake Sullivan.
“It is vital we do all we can to limit the PRC’s malign influence around the world, including in the Middle East,” the letter reads. PRC is the acronym for communist China’s official name, the People’s Republic of China.
“We support your efforts to work hand in glove with U.S. companies like Microsoft to strengthen our dominance in AI; however, we must also be clear-eyed about the risks posed by transferring our most critical AI technology particularly when it comes to countries where the PRC is active.”
In April, Microsoft
announced its $1.5 billion investment in G42, which will help “enhance the UAE’s position as a global AI hub.” Under the deal, Microsoft’s Vice Chair and President Brad Smith will serve on G42’s board, and the firm will run its AI applications on the Microsoft Azure cloud.
G42 is a multibillion-dollar tech firm based in the United Arab Emirates and chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and brother to the president. Along with Microsoft, Abu Dhabi’s sovereign wealth fund Mubadala, the country’s ruling family, and U.S. private equity firm Silver Lake hold stakes in G42. The company also has business ties with other U.S. tech firms, such as Dell and OpenAI.
The lawmakers said they want a briefing on the partnership before it advances to a second phase involving the transfer of export-restricted semiconductor chips and model weights, sophisticated data that improves an AI model’s ability to emulate human reasoning.
The letter is a sign of growing concern about the lack of regulations related to exporting sensitive AI models, as fears mount that companies such as G42 might share the prized technology with U.S. adversaries including communist China.
“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,” the lawmakers said.
Alleged Ties to Blacklisted Chinese Firms
Mr. Moolenaar and Mr. McCaul requested a U.S. assessment of G42’s ties to the CCP, its military, and any related entities before the Microsoft deal advances. “Given the extensive national security ramifications, the criteria and conditions for the international transfer of key U.S. artificial intelligence systems must involve Congress working in close bipartisan collaboration with Executive Branch agencies and the private sector. As the Microsoft–G42 deal moves toward Phase II, our committees intend to play a proactive and constructive role,” the lawmakers wrote.
Earlier this year, in a
letter to Commerce Department Secretary Gina Raimondo, former Rep. Mike Gallagher (R-Wis.), then chairman of the House Select Committee on the CCP, asked her to probe G42 over concerns about export control risks of U.S. technology. His committee found that G42 allegedly has ties with blacklisted Chinese firms and“works extensively with China’s military, intelligence services, and state-owned entities.”
G42 previously invested or partnered with telecom giant Huawei, the Beijing Genomics Institute, vaccine developer Sinopharm, and TikTok owner ByteDance. The committee also
found that “G42’s CEO Peng Xiao operates and is affiliated with an expansive network of UAE and PRC-based companies that develop dual-use technologies and materially support PRC military-civil fusion and human rights abuses.”
Mr. Gallagher warned that multiple U.S. tech firms developing and selling export-controlled technology have significant business ties with G42 and its subsidiaries, making them vulnerable to CCP-directed intellectual property theft.
Following the committee’s inquiry, G42 said in February it had divested its investments in China and was accepting constraints imposed upon it by the United States to work with U.S. companies.
In May, AI was among the areas of cooperation discussed between China and the UAE during President Sheikh Mohamed bin Zayed Al Nahyan’s recent visit to China.
Officials at G42, Microsoft, and the White House didn’t respond by publication time to a request by The Epoch Times for comment.
Reuters contributed to this report.
