SaMedia, Dec. 7—The U.S. government has approved the export of advanced AI chips to a Microsoft-operated facility in the United Arab Emirates (UAE) The export is  part of its controversial collaboration with Emirati AI firm G42, Axios reported. The decision comes amid heightened scrutiny from U.S. lawmakers concerned about the potential transfer of sensitive AI technology to China.

Microsoft’s $1.5 billion investment earlier this year secured it a minority stake and a board seat in G42, a company with ties to the UAE’s ruling family and major stakeholders, including Abu Dhabi sovereign wealth fund Mubadala Investment Company and U.S. private equity firm Silver Lake. The partnership involves G42 utilizing Microsoft’s cloud services for its AI applications.

The deal has faced significant backlash due to fears that G42 might share advanced U.S. AI technology with the Chinese government or military. Lawmakers demanded a thorough assessment of G42’s connections to the Chinese Communist Party before allowing the Microsoft-G42 collaboration to progress.

To mitigate these concerns, the approved export license stipulates strict controls: Microsoft must ensure that no personnel from countries under U.S. arms embargoes or listed on the U.S. Bureau of Industry and Security’s Entity List can access the UAE facility. This restriction includes individuals from China and entities associated with the Chinese government.

U.S. officials have underscored the national security risks posed by AI systems, which could potentially aid in developing chemical, biological, and nuclear weapons. The Biden administration has recently mandated that creators of the largest AI systems disclose key details about their technology to the U.S. government.

G42, under the leadership of its chairman, Sheikh Tahnoon bin Zayed Al Nahyan—the UAE’s national security advisor and the president’s brother—has pledged compliance with U.S. and UAE AI development standards. The company has also emphasized its commitment to ethical AI practices.

The U.S. Commerce Department, Microsoft, and G42 have not yet issued comments on this matter.

Th issue highlights the delicate balance between technological advancement and national security in the age of AI.