U.S. Lawmakers are Probing Microsoft’s $1.5B Investment in G42.

In a significant move, U.S. lawmakers have initiated calls for an investigation into Microsoft’s recent $1.5 billion investment in the Abu Dhabi-based artificial intelligence firm, G42. Representatives Michael McCaul and John Moolenaar, prominent figures in the House Foreign Affairs Committee and Select Committee on the Chinese Communist Party respectively, have underscored concerns regarding potential technology transfer and links between G42 and China.

The Investment’s Significance and Congressional Scrutiny

Lawmakers have raised alarms over Microsoft’s substantial investment in the Middle East. They cite concerns about the lack of congressional consultation and regulatory frameworksHeightened scrutiny is necessary because of the sensitive U.S. technology involved.The investment marks one of the largest by a U.S. tech firm in decades.

Lawmakers raise concerns over Microsoft’s large Middle East investment, urging regulatory oversight and congressional consultation, according to Barron’s Print Edition.

Political Context and Strategic Concerns

In their letter to Jake Sullivan, McCaul and Moolenaar addressed recent talks between UAE and China. Discussions on AI cooperation raised concerns about US national security implications. The letter was released publicly on Thursday. It highlighted potential risks from such diplomatic engagements.

Call for Intelligence Assessment and Corporate Response

The lawmakers have called upon the National Intelligence Council to assess any potential connections between G42 and China, as well as to evaluate the risks associated with technology transfer. Both Microsoft and G42 have not yet responded to requests for comment on the lawmakers’ inquiries, leaving questions about the nature and scope of their collaboration unanswered.

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Details of the Investment and Security Measures

Microsoft’s investment, announced in April, saw Brad Smith joining G42’s board. G42 also began using Microsoft’s cloud services for AI initiatives. The deal occurred amid rising geopolitical tensions and U.S.-China competition in the Gulf. An “intergovernmental assurance agreement” was crafted to safeguard AI security. It involved inputs from the U.S. and U.A.E. governments. This agreement aimed to mitigate potential risks from the collaboration.

U.S. lawmakers’ actions highlight concerns about technology investments, international relations, and national security intersections. They underscore the complexities of global technological partnerships amid heightened geopolitical competition.

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