UAE Assures Chip Security Amid US Concerns Over Middle East AI Exports

Amid Fear Of China's Access To Nvidia, AMD Chips Through Middle East, This CEO Assures UAE Reliable Partner For US: 'We Can Guarantee The Safety And Security Of This Technology' - Microsoft (NASDAQ:MSFT), Advanced Micro Devices (NASDAQ:AMD)

Amid growing concerns from the U.S. about the potential diversion of advanced chip technology to China, the UAE has assured its commitment to safeguarding these technologies. The assurance comes as the Biden administration considers imposing restrictions on chip sales from Nvidia Corp. NVDA and Advanced Micro Devices Inc. AMD to the Middle East. What Happened: Peng Xiao, CEO of UAE's prominent AI firm G42, reiterated the country's dedication to protecting sensitive technology. In an interview with CNBC, Xiao emphasized that the UAE is a reliable partner for the U.S. in securing chip technology. His comments follow the Biden administration's contemplation of restricting chip sales to the Middle East. "I cannot read the mind of the U.S. policymakers, but in many ways, I understand their position," Xiao said. "At the same time from our side, we've shown from the UAE side how transparent we are and how we can guarantee the safety and the security of this technology," he added. Xiao expressed an understanding of U.S. policymakers' concerns while highlighting the UAE's transparency and ability to ensure chip security. He conveyed optimism for enhanced collaboration and technology sharing between the U.S. and UAE. Despite previous U.S. warnings about G42's connections to China, the company has taken measures to reassure American partners, including divesting stakes in Chinese firms. In April, Microsoft Corp. MSFT entered a $1.5 billion agreement with G42, showcasing UAE's AI ambitions. See Also: Trump's Election Odds On Polymarket, Gary Gensler's Doubts About Cryptocurrency's Future, Shiba Inu Lead Developer's Cryptic Post Sparks Intrigue And More: This Week In Crypto The UAE and the U.S. have pledged to strengthen AI cooperation, with a joint statement affirming their commitment to fostering collaboration in AI and related technologies. Why It Matters: The U.S. has been cautious about the export of AI chips to the Middle East due to national security concerns. In May, the U.S. government temporarily halted the issuance of licenses for AI chip exports to the region, affecting companies like Nvidia and AMD. This move was part of a broader national security review of AI development in the area. In June, the UAE acknowledged the U.S.'s concerns about the potential diversion of advanced chip technologies to China. The UAE's Minister for Artificial Intelligence and Digital Economy, Omar Al Olama, recognized the geopolitical challenges due to the UAE's strategic location. Recently, the Biden administration was reported to be considering restricting the export of advanced AI chips to certain countries, including those in the Persian Gulf. This proposal aims to limit the AI capabilities of specific nations, citing national security concerns. Read Next: Anthony Scaramucci Praises Trump For Shifting The Crypto Debate: 'He's Now Forced The Democrats To Come Back Into The Middle' Image via Unsplash This story was generated using Benzinga Neuro and edited by Pooja Rajkumari Market News and Data brought to you by Benzinga APIs

UAE has shown it can guarantee the 'safety and the security' of chips, G42 CEO says

The CEO of the United Arab Emirates' premier AI firm stressed that the Gulf country is a reliable partner to the U.S. when it comes to keeping sensitive technology safe, as Washington reportedly mulls curbs on chip sales to certain countries -- particularly those in the Middle East. The UAE has shown it can "guarantee the safety and the security" of chips "if and when they are being deployed and used here," Peng Xiao, CEO of UAE AI firm G42, told CNBC at a conference in Dubai on Tuesday. His comments come as the administration of President Joe Biden continues to weigh limits on chip sales from Nvidia and AMD to the Middle East, according to Bloomberg, over fears that American technology and intellectual property could end up in the hands of China. "I cannot read the mind of the U.S. policymakers, but in many ways, I understand their position," Xiao told CNBC. "At the same time from our side, we've shown from the UAE side how transparent we are and how we can guarantee the safety and the security of this technology," he added. "So I think the door is opening up for us to do a lot more. I believe we'll see more and more collaboration, more and more technology sharing, more and more joint development of AI between our two countries." The CEO did not elaborate further on what measures were being taken to ensure the security of potential chip imports. CNBC has contacted the company for additional details.

UAE AI Firm's CEO Shrugs Off Possible Cap on Nvidia Chip Sales

The head of United Arab Emirates' top artificial intelligence firm said additional US restrictions on semiconductor technology wouldn't surprise him after a report that the Biden administration discussed caps on sales of advanced Nvidia Corp. chips to Persian Gulf countries. "I don't think it's anything new," G42 Chief Executive Officer Peng Xiao told reporters in Dubai on Tuesday. "There is a reason there are export controls in the first place. I'm not surprised that is still going."