Microsoft calls for ‘clarification’ on AI chip restrictions in the Middle East

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Microsoft has called for “clarity and consistency” over US export controls that have delayed shipments of advanced artificial intelligence chips to the Middle East, as the tech giant announced the opening of new AI institutes with Abu Dhabi-based partner G42.

The Seattle-based company this year invested $1.5 billion at G42, with the aim of using the UAE’s largest AI company as a gateway to markets in Africa and Asia, where the company believes there is unmet and growing demand for AI.

However, so far the United States has restricted exports of specialized chips for Artificial Intelligence software to the Middle East, concerned that the technology could leak to China. Microsoft has yet to obtain licenses to ship components needed for some of its plans with G42, a company that has come under scrutiny from U.S. lawmakers for its past ties to Chinese companies.

“We all need clarity and consistency from the US government on the specifics of the export control regime,” Brad Smith, president and vice president of Microsoft, told the Financial Times. “The US government has been working very hard over the summer on this issue in particular, and I believe clarity is coming.”

Smith added that while the export applications were made by Microsoft and some others are “not 100% complete, but getting very close.”

Despite these delays, Microsoft and G42 announced on Tuesday that they are co-founding two new research institutes based in Abu Dhabi focused on building AI systems for developing countries, including non-Western languages ​​like Arabic and Hindi.

Microsoft will provide a multimillion-dollar investment and access to computing infrastructure for the “AI for Good Lab” to partner with non-profits in Kenya to develop technology products.

The institutes will focus on the responsible use of AI and addressing social issues in the so-called Global South, and are part of efforts to demonstrate that companies are conscientious users of AI and offer the technology beyond Western markets.

“What we comfort the US government about in terms of export controls is that we are a responsible and safe place to produce AI,” said Peng Xiao, CEO of G42.

The move comes as countries scramble to regulate the rapidly growing technology, following warnings that it could harm society, from helping to spread misinformation to eliminating human jobs.

Xiao, who was born in China, studied in the United States and is now a UAE citizen, pointed to the latest software release from Microsoft-backed OpenAI as an example of the opportunities and threats of AI.

While AI could help developers significantly improve their programming skills, Xiao said, “you can imagine that it could help someone who knows nothing about programming start giving verbal commands.” [instructing the person how to] build a software that can hack into phones”.

Smith also linked responsible use of AI to allaying U.S. concerns about who gets to hold graphics processing units, the hardware components needed to develop advanced AI models.

Oil-rich Abu Dhabi — which has big ambitions to become a global AI hub — has sought to reassure US officials about its concerns over technology transfers, despite its deep ties with Beijing.

The UAE’s efforts to secure access to AI technology are led by powerful national security adviser and G42 chairman Sheikh Tahnoon bin Zayed Al Nahyan, who oversees a vast business empire. US private equity firm Silver Lake has also backed G42, as has Abu Dhabi sovereign investor Mubadala.

While trade officials are generally comfortable with Microsoft’s relationship with the G42, some security officials remain reluctant to allow the groups to have closer ties, officials and businesspeople involved in discussions in Washington said.

To allay US concerns, the G42 said that cut ties with Chinese suppliers including Huawei and removing its hardware. G42 also said in a statement that it had established a policy this year not to do business “with any entity” on the US export control list. Xiao said he did not believe the company had done so before.