Microsoft's $1.5 billion AI deal sets off national security alarms, White House involved

Microsoft has struck a $1.5 billion deal with Group 42 (G42), an artificial intelligence research and development firm operating in the United Arab Emirates, and is chaired by national security advisor His Highness Sheikh Tahnoun bin Zayed Ai Nahyan.

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The deal has sparked security concerns, with two House committee chairs now sending a public letter to the White House prompting it to investigate the deal, following Sheikh Mohamed bin Zayed Al Nahyan's visit to Beijing to strengthen AI-related ties, and G42 being investigated less than a year ago for its association with China. The $1.5 billion deal has caused fear among US intelligence officials as it could mean advanced US AI technologies could eventually reach China.

Notably, UAE's AI minister admitted the US concerns about the deal are valid, as it would be for "any country that has adversaries". Despite these seemingly widespread concerns, Microsoft and G42 are making an effort to implement as much transparency about the deal as they can, with Microsoft President Brad Smith saying G42 won't be gaining any AI access to proprietary US technologies such as processors, AI model design tools, and more. Moreover, the Microsoft president said the UAE's access would be in a "vault within a vault".

The letter has requested an investigation be launched into the "safeguards that will be in place to protect US-origin goods and technology, and other areas of ongoing national security concern."

As for Microsoft's response, The Register asked the Redmond company, and they said its, "working closely with the NSC and Department of Commerce, and US national security will continue to be a principal priority."