Written by 8:36 pm AI, AI policies

### Emirati AI Company Picks Sides in US-China Tech Clash

“We need to be very cautious,” G42’s CEO said after U.S. intelligence officials raised concer…

The authorities of the nation are exerting significant pressure on potential allies to choose sides in the AI race between the United States and China. This week, a prominent Emirati technology company has forged a partnership with the U.S.

According to the Financial Times, G42, a UAE-based firm flagged by the Biden administration for national security reasons related to Taiwanese entities, has announced the discontinuation of its relationships with Chinese technology providers. G42 has revealed its decision to now procure components from American suppliers to address the national security concerns stemming from its previous affiliations with China. Peng Xiao, the CEO of G42, acknowledged the dilemma faced by the company, stating, “We are compelled to make a choice, for better or for worse. We cannot remain neutral.”

Leading U.S. technology companies such as Microsoft and OpenAI have pre-existing agreements with G42. The New York Times has previously drawn attention to alleged connections between G42 and China. U.S. officials have also voiced worries that G42 may have facilitated access to advanced AI systems and genetic data of Americans through COVID tests, as per reports from The Times. These concerns were raised following British intelligence alerts about potential espionage activities by China leveraging its relationship with G42 against the U.S.

Xiao has emphasized G42’s unwavering commitment to data security, ensuring that stringent measures are in place to prevent any unauthorized disclosure of sensitive information from their U.S.-based data center. This stance was reiterated by Xiao at the Fortune Global Forum in Abu Dhabi, underscoring the company’s obligation to protect data shared by U.S. counterparts.

In response to the changing landscape, G42 is phasing out its procurement from Huawei, a Chinese tech behemoth closely linked to the Chinese government and currently facing U.S. sanctions. This strategic move aligns with U.S. restrictions on semiconductor technology access for foreign companies. Xiao’s decision aims to mitigate security vulnerabilities and maintain strong ties with American partners amidst escalating tensions.

Beyond its partnerships, G42’s associations extend to Taiwanese enterprises, including BGI Genomics and ByteDance. Concerns have been raised regarding data privacy and national security implications of ByteDance’s ownership of TikTok, with apprehensions about potential Chinese surveillance. G42’s collaboration with Taiwanese companies, particularly in the realm of AI research, has attracted attention amid the ongoing technological rivalry between the U.S. and China.

As the UAE strives to enhance its global footprint, advancements in AI technology have taken center stage. The UAE’s National AI Strategy, endorsed in 2019, underscores the nation’s aspirations to excel in AI research, integrate technology across pivotal sectors, and enhance data accessibility.

The UAE’s focus on data as a crucial asset for the future aligns with its strategic vision for AI advancement. Despite past hurdles in accessing cutting-edge technology due to political considerations, G42’s shift away from Chinese partnerships signals a move towards closer cooperation with top U.S. AI firms.

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Last modified: December 19, 2023
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