AI chip export to UAE gets green light from US authorities

AI chip exports to the UAE have been approved by the US under a partnership with Microsoft and G42.
The US has approved AI chip exports to UAE under a Microsoft-G42 partnership.

The US government has authorised the export of advanced AI chips to a Microsoft-operated facility in the United Arab Emirates. This approval comes as part of Microsoft’s $1.5 billion partnership with Emirati AI firm G42, where the US tech giant holds a minority stake and a board seat. G42 uses Microsoft’s cloud services to support its AI applications.

Concerns arose over potential risks of US AI technology being transferred to China, prompting scrutiny from lawmakers. They sought clarity on G42’s connections to Chinese authorities before permitting the deal to proceed. The export licence requires strict compliance measures, ensuring restricted access to the UAE facility by individuals or organisations from nations under US arms embargoes, including China.

AI-related national security risks, such as the facilitation of weapons development, remain a key issue for US officials. The Biden administration has implemented regulations requiring major AI developers to share system details with the government. G42 has publicly stated its commitment to aligning with international standards in collaboration with US partners and the UAE government.

Ownership ties also add complexity, with G42 partly owned by Abu Dhabi’s sovereign wealth fund and chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security advisor. The deal underscores a delicate balancing act as Washington navigates strategic and economic interests in the AI sector.