Based on sources familiar with the agreement, Axios said Saturday the U.S. government has cleared the sale of advanced artificial intelligence processors to a Microsoft (MSFT, Financial)-operated plant in the United Arab Emirates. The choice reflects Microsoft's partnership with G42, an artificial intelligence company with headquarters in Abu Dhabi.
In April Microsoft revealed intentions to fund G42 with $1.5 billion, purchasing a minority share and a board seat. Under the deal, G42 will run its artificial intelligence programs using Microsoft's cloud services. September saw the businesses unveil intentions to set two labs in Abu Dhabi to assist in ethical artificial intelligence projects.
U.S. legislators worried about possible transfers of U.S. AI technology to China via G42 under close examination the agreement faced. Before moving on with the alliance, legislators asked for an inquiry on G42's ties to China's military, government, and Communist Party, Reuters said.
Over the past month, Microsoft shares have increased 4.7% while its year-to-date bump is at more than 17%. For the worldwide artificial intelligence policy of the digital behemoth, the alliance draws attention on both possibilities and geopolitical complexity.
