Group 42, the UAE-based AI firm, is getting all the attention from the US and not for the right reasons. The government of the USA believes that Group 42 has close ties with China and their operations may lead to technology leaks. Group 42, on its part, has assured the US government that it is gradually cutting all sorts of intelligence and military ties with China. However, the US authorities are visibly not happy.
What’s G42?
G42, or Group 42, is an AI firm founded in the United Arab Emirates back in 2018. Its core purpose is to develop artificial intelligence capabilities for different industries. The AI firm claims to have broken all ties with China to focus on the full-fledged development of AI technologies. The firm has both the US as well as Middle Eastern investors. Zayed Al Nahyan- the national security adviser of the UAE, and Peng Xiao- the CEO of G42, are the key stakeholders with maximum control over the company.
G42 has been strongly denying any kind of relationship with the People’s Republic of China. They claim to operate within ethical boundaries while adhering norms and regulations.
US restrictions on technology companies!
The ongoing geopolitical scenario in and around the USA always hampers any kind of technological expansion idea in Africa. Technology giants such as Cisco, Microsoft, and Google cannot simply join hands with any country because of issues such as national security concerns, excessive competition, and data privacy.
The US has always been stringent with technology firms that have close relationships with Russia and China.
The Group 42 restriction is not the first instance of its kind. Recently USA, under the leadership of Biden, went ahead and banned the cybersecurity software Kaspersky. They believe that security software companies can give sensitive data of US-based users to the Russian government. Similarly, back in 2020, the FCC or US Federal Communications Commission, stated ZTE and Huawei as threats to national security. The FCC prevented companies from buying any products from these two network equipment manufacturers.
To cope with these security concerns, the US government is taking significant measures such as designating Kenya as the “First Non-NATO Ally” and agreeing to invest in as well as share technology resources with Kenya to enhance cybersecurity scenario in Africa.
The US is taking it slow
The Senior Technology Director at US National Security Council– Tarun Chhabra informed that the Microsoft deal with G42 Holdings is still intact. Banning a specific company and forcing other companies to not work with them can be tricky. And even after rounds of audits, legalities, paper work, and other efforts, it does not ensure 100% safety.
Nations like Russia and China are far more swift in terms of developing connections with African and Middle Eastern suppliers. However, the USA is still playing it slow. This slow approach is taking a toll on tech giants like Microsoft and Cisco as they are completely uncertain about their partnerships and expansion in Africa and the Middle East.
Microsoft has invested a whopping $1.5 billion into Group 42 Holdings. Kenya and other supporters of the US see this partnership as a golden opportunity for the US government to gain control over the areas which has been predominantly under the influence of China. However the US authorities are doubtful of G42’s close ties with China. The recent failures of Microsoft are also a major concern for the US authorities. The tech giant has accepted responsibility for the same and has promised to prioritize national security over anything else.
The US, on the other hand, is trying to restrict chip exports to the Middle East. AMD and Nvidia chipmakers are finding it hard to obtain licenses from the US government. Pentagon officials have not yet decided whether or not to approve Nvidia’s H100 chips for the Middle East. Nvidia chips have become a major cause of security concern as they play a significant role in weaponizing AI.
The aftermath of the Microsoft-G42 resistance
The restriction on the Microsoft-G42 partnership can affect the status of the US government and weaken its attempts to attain a global leadership position in terms of developing artificial intelligence. The Pentagon officials want only the American companies and not the Chinese firms to benefit from their AI expansion projects.
As of now, the US government is aiming to convince Middle Eastern countries to cut all ties with China and Russia. Although the US has a competitive edge over Beijing in terms of cloud computing, a lot depends on whether or not the USA is actually willing to leverage the technology.
The Microsoft-G42 deal has huge potential to establish the US as a global AI leader. However, security concerns, including the need for robust phishing protection, have slowed down the expansion plans, and there is no clarity over the future course of action.