There have been reports that the United Arab Emirates (UAE) has “suddenly cancelled” the ongoing series of meetings between a group of US congressional staffers and Emirati AI firm G42, after some US lawmakers raised concerns that this practice may lead to the transfer of advanced American AI technology to China.
However, a congressional spokesperson, who provided this information, chose to remain anonymous due to internal committee policy, as reported by Reuters.
The order was given directly by the UAE’s ambassador to the US, who halted the meetings between staffers from the House Select Committee on China and G42, as well as various Emirati government officials. This development only adds fuel to the fire of high tensions surrounding the scrutiny of G42 amid a $1.5 billion agreement with Microsoft. Some US congresspeople are already worried about sensitive technology getting into the hands of a UAE firm that reportedly has Chinese ties.
The committee’s spokesperson expressed increased concerns regarding the G42-Microsoft deal due to the UAE’s unwillingness to engage in talks. “Expect Congress to become more involved in overseeing these negotiations,” the spokesperson said.
The cancelled meetings may signal a diplomatic crisis due to the increased attention of China hawks in Congress. The efforts of these lawmakers to closely scrutinise the G42-Microsoft deal have particularly sparked controversies. Members of Congress are focused on ensuring that sensitive AI developments and products resulting from the agreement will not be diverted by the Emiratis to China.
The State Department gave no comment, whereas G42 directed the media to the Emirati government. The UAE embassy spokesperson announced that the situation resulted from a “miscommunication,” as they were notified of the staff delegation just the day before their planned arrival. The embassy emphasised its regular engagement with committee members and staffers in recent months, asserting that the committee has been kept informed about joint UAE-US efforts to strengthen control over critical advanced technologies.
The congressional staffers had planned these meetings as part of a regional visit from July 16-19. Their agenda included discussions on the transfer of sophisticated chips from companies like Nvidia to the UAE and Saudi Arabia, as well as US-China tech competition.
Ambassador Yousef Al Otaiba cited a July 11 letter from committee chairman John Moolenaar to US National Security Advisor Jake Sullivan as the reason for the cancellations. This letter, co-signed by House Foreign Affairs chair Michael McCaul, requested a White House intelligence briefing on Microsoft’s investment in G42 before the deal could progress to its second phase, which would involve transferring export-restricted semiconductor chips from Nvidia and sophisticated AI model weights.
The Biden administration has taken a positive view of the G42-Microsoft deal, stating that G42’s severance from China’s Huawei has been a major positive factor for the deal. However, last year, the administration also imposed sweeping curbs on AI chip exports, requiring licenses for shipments under a more restrictive policy than the previous Trump administration. Additionally, the policy of restricting exports to China requires licenses for exports to the UAE and some other Middle Eastern countries.
It is noted that a regional visit by a congressional delegation took place, during which they met with Saudi officials who expressed a desire to alleviate US companies’ concerns about the activities of the Chinese government in Saudi Arabia. Their goal was to obtain permission to import advanced American chips.
The level of interaction between US and other countries’ authorities illustrates the link between technological innovation, international political relationships, and national security issues.
See also: UAE unveils new AI model to rival big tech giants
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