Representatives from the Republican Party are calling for an intelligence briefing from the government on the Microsoft and G42 AI deal. They fear G42’s ties to China cause a security concern.
The concerns were raised by Republican lawmakers Michael McCaul and John Moolenaar. The letter sent to the National Security Advisor stated:
We remain deeply concerned by attempts to move quickly to advance a partnership that involves the unprecedented transfer of highly sensitive, U.S.-origin technology, without congressional consultation or clearly defined regulations in place.
The letter further read:
Given the ties between (China) and G42, as well as (China’s) continued interests in the UAE, we ask that the National Intelligence Council prepare an official Intelligence Community assessment on the ties between G42…to the Chinese Communist Party, the People’s Liberation Army, or any part of (China’s) apparatus, before this partnership proceeds further,
We have already seen how disruptive AI has been and how being the first to develop the tech is all that matters. AI’s applications also span military use and the US government simply cannot afford foreign powers getting hold of its tech.
While the concern shown by the Americans are genuine, it should not be forgotten that UAE and China have close ties and partnerships across various fields.
One of the problems that the US has with G42 is its close ties with Huawei. The US govt considers Huawei as an extension of the Chinese government.
G42 has partnered with Huawei extensively, which the U.S. position is basically that Huawei technology where ever its located amounts to surveillance on behalf of the PRC
McCaul sold MSFT stock
While all the above is a matter for the politicians to deal with, there is more that might require some attention from the legal departments.
The Republican lawmaker initiating the call for this briefing is Michael McCaul. For those who don’t know, he is known for taking large positions in stocks over a long period of time. When he buys or sells, people notice.
In March and April this year, McCaul was selling Microsoft stock. In total, he sold somewhere between $510,000 to $1,150,000 worth of shares of the tech giant. Around the same time, Microsoft was investing $1.5 billion in he UAE firm.
McCaul sits on the Foreign Affairs Committee. Considering the fact that Microsoft was signing such a big deal with a company known to have ties with China, it is unlikely that the Republican Representative did not know about it. He also sits on the Homeland Security Committee.
In short, if there is something to know about a threat to American security, McCaul is likely to know about it.
If he did indeed have knowledge of the potential issues with this transaction, is it possible that he was selling Microsoft stock with the knowledge that he will have to call for an investigation into this deal down the road?
No one can say for sure but it is a question worth asking.
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