The Biden administration is proactively encouraging U.S. tech firms to hunt business and partnerships in artificial intelligence within the United Arab Emirates, cultivating an alliance that might give it a leg up on China in developing the revolutionary technology.
This week, Microsoft announced a $1.5 billion investment in G42, an Abu Dhabi-based AI group chaired by powerful Emirati King Sheikh Tahnoon Bin Zayed al-Nahyan, marking the tech giant's latest big bet on AI represents.
According to people conversant in the discussions, the deal was accomplished after a series of meetings last 12 months brokered by the U.S. government between investors and corporations from the United Arab Emirates and American technology firms resembling Microsoft, Google and OpenAI became.
The talks are a part of Washington's efforts to achieve dominance over Beijing in the event of artificial intelligence and other sensitive technologies.
Commerce Secretary Gina Raimondo was closely involved, an individual briefed on the negotiations said, as the best levels of the U.S. government worked to construct closer ties between American technology firms and Abu Dhabi.
Another critical figure is Sheikh Tahnoon, the UAE's national security adviser, who also oversees a business empire and Abu Dhabi's largest sovereign wealth fund. As G42 chairman, he leads the country's burgeoning AI efforts and was photographed leading the contract signing with Microsoft.
The US-UAE meetings show how the battle for dominance of emerging technologies has develop into geopolitical, as industrial decisions are linked to national strategic and security interests.
Oil-rich Abu Dhabi has ambitions to make use of its vast petrodollar wealth because the centerpiece of world AI development, reducing its reliance on fossil fuels.
The company has launched MGX, a fund for AI deals, and is anticipated to take a position billions in research and development through government organizations resembling the Advanced Technology Research Council.
AI executives including OpenAI CEO Sam Altman and chipmaker Nvidia CEO Jensen Huang have develop into regular visitors to the Gulf state.
Altman traveled between the United Arab Emirates and Washington this month, meeting government officials and investors to debate how AI firms and governments in each countries can work together.
The OpenAI founder has discussed plans for an ambitious chip project with Sheikh Tahnoon to lift billions of dollars to develop the semiconductors needed to coach and construct AI models, people conversant in the discussions say .
According to an individual with direct knowledge of the talks, Altman also met with American Ambassador to the United Arab Emirates Martina Strong, in addition to members of Congress and the U.S. national security community, to make sure there may be enough energy, chips and data center capability to satisfy the to support the AI boom.
While in search of stronger ties, U.S. officials had previously expressed concern in regards to the UAE's use of Chinese technology, particularly Huawei's 5G hardware, and feared that China could use those networks to access information from a serious access US allies.
U.S. lawmakers had been scrutinizing G42's ties to Chinese firms because they feared the corporate could provide a conduit for U.S. AI technology and Americans' genetic data to succeed in the Chinese government and corporations. G42 CEO Peng Xiao was born in China, studied within the USA and is now a citizen of the United Arab Emirates.
During a visit to Washington last 12 months, Sheikh Tahnoon told his counterparts that he desired to work toward a framework after Abu Dhabi made a “strategic decision” to concentrate on U.S. technology, in line with an individual conversant in the strategy UAE was informed.
“The UAE sees data as the brand new oil,” the person said. “It became clear that there needed to be a brand new solution to exist between the US and China due to US concerns about Chinese technology.
“They have had very productive conversations since then, particularly with Raimondo,” the person added.
Given the sensitivity surrounding national security, approval of the G42-Microsoft deal required months of talks with government officials on each side, two people near the negotiations said.
One of those people said the deal included the G42's commitment to remove Chinese technology – particularly hardware built by Huawei – from its systems.
Xiao told the Financial Times late last 12 months that it was cutting ties with Chinese partners to prioritize ties with US firms, saying: “We are ready where we’ve got to make a choice.” . We can’t work with each side.”
The FT reported earlier this 12 months that the group's enterprise capital arm had also sold its Chinese holdings.
G42's take care of Microsoft means the corporate must comply with US regulations. The two have signed an “Intergovernmental Assurance Agreement,” which the businesses said was drawn up in “close consultation” with Washington and Abu Dhabi.
“Both firms remain committed to complying with U.S. and international trade, security, responsible AI and business integrity laws and regulations,” G42 and Microsoft said in a press release.
Brad Smith, vice chairman and president of Microsoft, told the FT the investment “reflects our company's confidence within the UAE as a rustic, in G42 as an organization and in Peng as CEO”.
The Microsoft-G42 deal appears to be the beginning of a broader US-UAE alliance in AI.
The trade deal represents “a start line to define the contours of cooperation and partnerships between governments,” said an individual conversant in the UAE’s pondering.
They added: “The UAE shouldn’t be giving up on Chinese technology and is working to administer this relationship, however the UAE's ability to cooperate with the Chinese in technology will probably be limited.”
