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US Approves AI Chip Export for Microsoft-G42 UAE Partnership

In May, Microsoft had announced it was expanding its collaboration with G42 and investing US$1.5 billion into the company with the aim of improving access to secure AI and cloud capabilities.

By Inc.Arabia Staff
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The US government has approved the export of advanced artificial intelligence (AI) chips to a Microsoft-operated facility in the UAE as part of the company's partnership with the Emirati AI firm G42, reported Axios, citing two anonymous sources in the know.

The specific manufacturer of the chips has not been disclosed. 

In May 2024, Microsoft had announced it was expanding its collaboration with G42 and investing US$1.5 billion into the company with the aim of improving access to secure AI and cloud capabilities. The collaboration, which allows for the export of AI chips, raised concerns among US officials about China gaining access to the technology, resulting in delays in exporting the chips.

The approved AI chips export license comes with restrictions, which include Microsoft preventing personnel from countries subject to US arms embargoes or those listed on the Bureau of Industry and Security (BIS) Entity List, including China, from accessing the facility. Personnel sanctioned by the US Treasury Department are also prohibited from involvement. Additionally, the license restricts the use of chips for training models by individuals from restricted countries. 

In August, Microsoft stated that it was collaborating with US partners and the UAE government to align with AI standards and establish a "regulated technology environment" aimed at enabling the UAE to utilize US computing capabilities locally while maintaining its technological independence. A month later in September, the two companies revealed plans to establish two AI institutes in Abu Dhabi. 

G42 is chaired by HH Sheikh Tahnoon bin Zayed al-Nahyan, the UAE’s national security advisor, who has played a significant role in the country’s push to build a stronger AI sector. 

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