According to sources close to the deal, Axios said on Saturday the U.S. government authorized the sale of advanced artificial intelligence processors to Microsoft (NASDAQ:MSFT)-factory operated in United Arab Emirates. This choice reflects Microsoft’s partnership with G42, an artificial intelligence company headquartered in Abu Dhabi.
In April, Microsoft revealed plans to fund G42 with $1.5 billion, purchasing a minority stake and a board seat. Under the agreement, G42 will run its artificial intelligence programs using Microsoft’s cloud services. In September, the companies revealed plans to open two laboratories in Abu Dhabi to contribute to ethical artificial intelligence projects.
US lawmakers have raised concerns about possible transfers of US AI technology to China via the G42, after taking a close look at the deal. Before moving forward with the alliance, lawmakers called for an investigation into the G42’s ties to China’s military, government and Communist Party, Reuters said.
Over the past month, Microsoft shares are up 4.7%, while their year-to-date rise is more than 17%. For the digital giant’s global artificial intelligence policy, the alliance draws attention to the possibilities and geopolitical complexity.
This article first appeared on GuruFocus.