Jun 14, 2024 06:00:00

UAE minister says US concerns that China could use Middle East to circumvent AI chip sanctions are valid

The US government has positioned China's military use of AI as a security concern, and has

restricted domestic companies such as NVIDIA and Intel from exporting high-performance chips to China, as well as expanding export restrictions on AI chips to the Middle East . Meanwhile, Omar Al Olama , the UAE 's Minister of Artificial Intelligence and Digital Economy, said in an interview that the US's concerns that 'China will use the Middle East to evade sanctions on AI chips' are valid.

UAE Minister Says US Concerns Over Chip Supplies to China Valid - Bloomberg
https://www.bloomberg.com/news/articles/2024-06-11/uae-minister-says-us-concerns-over-chip-supplies-to-china-valid

UAE calls US fears of China using region as AI proxy valid • The Register
https://www.theregister.com/2024/06/12/uae_us_china_ai/

The United States has long been restricting exports of AI chips to China, but in May 2024 it was reported that it was delaying the issuance of licenses to semiconductor manufacturers such as NVIDIA and AMD to ship large quantities of AI accelerators to the Middle East. According to sources, U.S. authorities are conducting a security review of AI development in the Middle East.

Bloomberg said the move stems from concerns that Chinese companies, cut off from cutting-edge American technology, could gain access to high-performance chips through Middle Eastern data centers.

G42 , a major UAE-based AI company, has emerged as an AI leader in the Middle East over the past few years, buying large amounts of AI chips from companies like NVIDIA and partnering with California-based Cerebras Systems to build a supercomputer.

However, US intelligence agencies view G42's relationship with Chinese companies as risky , and suspect that Chinese companies may have access to cutting-edge AI chips through G42.

'I think the concern about chips passing through the Middle East to get to China is a valid concern for a country that has adversaries,' Oramah said in a television interview with Bloomberg. 'I understand that U.S. authorities have good reason to be wary of Middle Eastern companies.'

In recent years, G42 has been trying to weaken its ties with China and shift its focus to the United States, with CEO Peng Xiao saying in an interview in February 2024 that 'all of the investments we've made in China have been sold off. Therefore, we no longer need to have a physical presence in China.'

In April 2024, Microsoft announced that it would invest $1.5 billion in G42, and G42 is also OpenAI's only partner in the Middle East. Orama argued that the contract between Microsoft and G42 is the result of several years of cooperation and track record between the United States and the United Arab Emirates.