Microsoft Partnership With UAE Company Poses AI Tech Transfer Concerns, Lawmakers Say

Two Republicans asked the Biden administration July 11 to provide a classified briefing on Microsoft’s new partnership with Group 42 Holding Ltd. (G42), a United Arab Emirates-based artificial intelligence company with ties to China.

In a letter to White House National Security Adviser Jake Sullivan, House Foreign Affairs Committee Chairman Rep. Michael McCaul, R-Texas, and House Select Committee on China Chairman Rep. John Moolenaar, R-Mich., said they’re concerned that without adequate protections, sensitive U.S. technology transferred as part of the partnership could end up in China’s hands. They said G42 and its affiliates have ties to China-linked entities, including ones working to evade U.S. export controls and sanctions.

“[W]e support your efforts to work hand in glove with U.S. companies like Microsoft to strengthen our dominance in AI,” the lawmakers wrote. “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 [China] is active.”

In a statement, a National Security Council spokesperson said the administration “has been in regular dialogue with members of Congress to ensure they are apprised of opportunities and risks associated with digital infrastructure.” Sullivan, the spokesperson added, “looks forward to continuing this engagement.”

Microsoft announced the partnership in April, saying it will allow the companies “to co-innovate and deliver advanced AI solutions with [cloud computing platform] Microsoft Azure for various industries and markets across the Middle East, Central Asia and Africa.” As part of their collaboration, the firms have agreed to “comply with U.S. and international trade, security, responsible AI, and business integrity laws and regulations," the announcement said.