The United States has approved the export of advanced artificial intelligence (AI) chips to Microsoft facilities in the United Arab Emirates, under its partnership with local AI company G42, Axios reported, citing two people close to the deal.
Microsoft invested $1.5 billion in G42 earlier this year, giving the company a minority stake and a seat on the board of directors.
As part of the deal, G42 would use Microsoft cloud services to run its artificial intelligence applications.
However, the deal came under scrutiny after US lawmakers raised concerns about the possibility of G42 transferring powerful AI technology to China.
They asked the US to evaluate G42’s ties to the Chinese Communist Party, military and government before the deal with Microsoft moved forward.
The approved export license requires Microsoft to prevent access to its facilities in the United Arab Emirates to personnel from nations subject to US arms embargoes or who appear on the entity list of the US Bureau of Industry and Security, according to the report published by Axios.
The restrictions affect people who are physically in China, in the Chinese government or staff working for any organization based in that country.
US officials say AI systems could pose risks to national security, including by facilitating the manufacture of chemical, biological and nuclear weapons.