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Microsoft’s UAE deal could move U.S. chips and AI technology abroad


The sales accord could progress to a second phase that entails the export of crucial components of AI technology such as model weights, Microsoft's president said.

Microsoft President Brad Smith said the tech company's high profile deal with the United Arab Emirates-backed AI firm G42 could eventually involve the transfer of sophisticated chips and tools — a move that a senior Republican member of Congress warned could have national security implications. In an interview with Reuters this week, Smith said the sales accord — the many details of which are being reported here for the first time — could progress to a second phase that entails 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 firm timeline for the second phase, Smith said.

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