- Microsoft President Brad Smith said the tech company's high profile deal with the United Arab Emirates-backed AI firm G42 could eventually involve the transfer of sophisticated chips and tools - a move that a senior Republican congressman warned could have national security implications.
The closed-door nature of the negotiations between two private companies over the terms and safeguards on transfers of U.S. technology have alarmed some lawmakers. "Fundamentally, what we're focused on is trying to ensure that American technology can move around the world safely and securely," Smith said.When Microsoft and G42 announced the deal last month, it was billed as drawing G42 closer to the U.S. and spreading U.S. technology influence amid strategic competition with China. Microsoft is investing $1.5 billion in G42 with Microsoft's president, Smith, taking a seat on its board.
Smith said many of the details of the deal remain to be worked out, including how to protect what are known as AI "model weights," which is the critical part of an AI model that defines how it responds to questions or prompts. Those weights are obtained by training an AI model with huge amounts of data, often at great expense.
Under the Microsoft deal, G42 will also follow a "know your customer" rule to determine who is using Microsoft's technology and will not allow Chinese firms to use it to train AI models, Microsoft executives said. U.S. regulators have proposed a similar rule, but they have not yet enacted it.
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