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Microsoft’s deal with the UAE could move American chips and AI technology abroad

Microsoft President Brad Smith said the tech company’s high-profile deal with UAE-backed AI company G42 could ultimately involve the transfer of advanced chips and tools — a move that a senior Republican member of Congress warned could could have consequences for national security.

In an interview with Reuters this week, Smith said the sales agreement – many details of which are reported here for the first time – could evolve into a second phase that would involve the export of crucial components of AI technology such as model weights, a crown jewel of AI systems that determine how powerful they are.

There is no set timeline for the second phase, Smith said.

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