“Our two companies will work together to bring AI and digital infrastructure and services to underserved countries, not just the UAE,” said Smith, who will join G42's board of directors.
Microsoft negotiated the deal with the U.S. and United Arab Emirates governments for more than a year to ensure all parties were satisfied with the terms, said the people, who asked not to be identified discussing the matter. A private story. As part of negotiations with the U.S. government, the G-42 agreed to remove Chinese-made equipment from activities due to concerns about the use of Huawei equipment, the person said.
As tensions between the US and China rise, AI has emerged as a flashpoint. The deal announced on Wednesday will give major US tech giants influence over the burgeoning AI sector in the United Arab Emirates (UAE) amid concerns that China is seeking more investment. . regional.
The United States regularly works with other countries to expand opportunities for American companies while balancing national security concerns, Commerce Department spokeswoman Brittany Carin said Tuesday.
“This includes working with countries like the UAE, which are global players in cutting-edge technologies, towards verifiable commitments on how these technologies should be safely developed, protected and deployed. “This includes,” she said. “If managed responsibly, investments like the ones announced today have the potential to further digital innovation around the world.”
Lawmakers from both parties said they were encouraged by the potential for a deal that would advance U.S. technological leadership.
“American innovation and American values should lead the world, and agreements like this accomplish that,” Sen. Mark R. Warner (D-Va.), chairman of the Senate Intelligence Committee, said in a statement. That's one way to do that.” . “At the same time, we need to make sure that every contract is structured in a way that protects our intellectual property treasures.”
G42 began negotiations with Microsoft in late 2022 because it recognized the need for commercial support from a major tech company, G42 told The Washington Post in an email.
Microsoft has pushed itself to the forefront of the AI revolution in recent years by partnering with small and medium-sized businesses, including a multibillion-dollar investment in OpenAI, the developer of ChatGPT. Microsoft has recently been increasing its investments outside the United States, including signing a major contract with French company Mistral. The deal allows Microsoft to assert itself as a formidable technology leader on the world stage while avoiding traditional antitrust scrutiny.
G42 group chief executive Peng Xiao said the partnership would “significantly strengthen” the company's global presence by allowing it to build on Microsoft's cloud infrastructure. .
G42 told the Post that it will begin phasing out existing Chinese-made components and incorporating more Microsoft technology in 2022. G42 began discussions with the US Department of Commerce in 2023, following more formal cooperation with Microsoft. In April 2023, the two companies announced a joint plan to build artificial intelligence solutions using Microsoft's Azure cloud system, and subsequently agreed to deploy AI tools to meet the complex security needs of government users. And in November, Microsoft made his G42 Arabic AI language model, called Jais, available on its cloud.
The G42 has been the subject of parliamentary scrutiny over its close relationship with China.
In a letter dated January 4 to Commerce. Commissioner Gina Raimondo asked by parliamentary committee Her agency reviewed export regulations regarding G42 and Several affiliated companies.
The Chinese Communist Party's House of Representatives Select Committee said in a letter that Mr. Xiao belongs to an “extensive network” of companies that support the Chinese military and enable its human rights abuses.
It also said that Mr. Xiao held a leadership position at a subsidiary of Dark Matter, a company based in the United Arab Emirates. According to the letter, Dark Matter “develops spyware and surveillance tools that can be used to spy on dissidents, journalists, politicians, and U.S. companies.”
In addition to hacking and espionage against dissidents in the UAE, Dark Matter caused a split in the US government by employing some Americans while hacking others. Three former U.S. intelligence officers admitted to misconduct in 2021, prompting legislation to restrict where similar veterans can serve.
The committee's chairman, Rep. Mike Gallagher (R-Wis.), later said he was satisfied with the G-42's decision to sell stakes in Chinese companies.
“The UAE is an important and strong ally and will become increasingly important to regional and global stability as AI advances,” Gallagher said in February. “Therefore, it is imperative that the United States and UAE further understand and mitigate high-risk commercial and research relationships with the United States.” [People’s Republic of China] entity,” he added.
Joseph Menn contributed to this report.
