Microsoft-G42 agreement beneficial since it severed Huawei’s connections, according to White House official

Microsoft-G42 agreement beneficial since it severed Huawei's connections, according to White House official
Microsoft-G42 agreement beneficial since it severed Huawei's connections, according to White House official

According to a White House official, Microsoft’s recent agreement to invest $1.5 billion in G42, an artificial intelligence company, is “generally a positive development” because it forced the corporation to sever ties with China’s Huawei.

A White House official stated on Monday that Microsoft’s (MSFT.O) new tab deal to invest $1.5 billion in artificial intelligence company G42 is “generally a positive development” because it compelled the United Arab Emirates-based business to cut links with China’s Huawei. White House technology advisor Tarun Chhabra stated, “We have an interest in changing that picture in a place like the UAE… where you had G42 working very closely with Huawei, for example.”

At a Council on Foreign Relations think tank event in Washington, D.C., Chhabra stated, “We want to encourage the effort to work with Microsoft as an alternative to Huawei, which is generally a positive development.” Fearing that the Chinese corporation could eavesdrop on clients and feed the information back to Beijing, Washington has been trying to persuade allies to remove the telecom equipment giant Huawei from their networks for years. The Middle East has also begun to play a bigger role in the digital battle between China and the United States as the race to develop artificial intelligence becomes more intense.

As per the terms of the agreement, which was revealed in April, G42 will run its AI applications on Microsoft cloud services, and both businesses assured the governments of the United States and the United Arab Emirates of security. According to a source, the agreement imposed a number of safeguards on the AI technologies that G42 had access to, including a commitment to remove Chinese equipment—including Huawei’s—from the Emirati company’s operations. In response to a question about whether export limitations on the software itself were on the table, Chhabra added that the Biden administration was closely monitoring the implementation of AI systems.

Whether they are proprietary or open-sourced, we are closely monitoring the most recent models as they are made available,” he stated. “We want to know what their capabilities are.” The Commerce Department was reportedly mulling a new regulatory effort to limit the export of closed-source or proprietary AI models, whose training data and software are kept secret, according to an article.

Strong restrictions already exist on the shipment of powerful AI chips developed in the United States to China and other nations where their smuggling into the country is considered a risk.

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