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'

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. (NASDAQ:NVDA) and Advanced Micro Devices Inc. (NASDAQ: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. (NASDAQ:MSFT) entered a $1.5 billion agreement with G42, showcasing UAE’s AI ambitions.

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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.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari