U.S. chips and AI technology may be relocated overseas with Microsoft’s UAE agreement

Microsoft President Brad Smith recently revealed that the tech company’s partnership with the United Arab Emirates-backed AI firm G42 could potentially involve the transfer of advanced chips and tools. This move has raised concerns from a senior Republican member of Congress regarding potential national security implications.

In an interview with Reuters, Smith disclosed that the sales agreement between Microsoft and G42 could advance to a second phase, which would include the export of essential components of AI technology, such as model weights. These model weights are considered the crown jewel of AI systems, as they determine the power and capability of the technology.

Although there is no set timeline for the implementation of the second phase, Smith’s comments suggest that Microsoft is considering further collaboration with G42 that could involve sharing critical AI technology. This development highlights the evolving nature of the partnership between the two companies and the potential implications it could have on national security.