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News

Congress Staff Sought Meetings With AI Firm G42 Amid China Tech Transfer Concerns, But These Were Personally Blocked Top UAE Diplomat: Report

Author: Ananya Gairola | July 30, 2024 12:26am

The United Arab Emirates has reportedly put a halt to meetings between Emirati AI firm G42 and U.S. Congressional staffers in the wake of concerns over the potential transfer of technology to China.

What Happened: The UAE Ambassador to the U.S. “personally intervened” to stop meetings between the House Select Committee on China staffers and G42, reported Reuters on Monday, citing a congressional spokesperson.

This intervention was triggered by U.S. lawmakers’ fears that G42 might transfer U.S. AI technology to China. These concerns were amplified by a $1.5 billion investment by Microsoft Corp. (NASDAQ:MSFT) in G42.

The lawmakers fear that this could lead to the transfer of sensitive technology to the UAE firm, which has historical ties with China.

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“The committee has even more concerns about the G42-Microsoft deal given the UAE’s refusal to meet with congressional staff to discuss these issues. As a result, expect Congress to get more involved in oversight of these negotiations,” stated the committee spokesperson.

Why It Matters: The cancellation of these meetings could signal diplomatic fallout from the increasing efforts by China hardliners in Congress to scrutinize the G42-Microsoft deal and control the flow of sensitive AI technology to the Middle East over fears of diversion to China.

The staffers had sought the meetings as part of a regional visit on July 16-19 to discuss the transfer of sophisticated chips from companies like Nvidia Corp. (NASDAQ:NVDA) to the UAE and Saudi Arabia, as well as U.S.-China tech competition.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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