Major setback for China's tech sector as UAE plans to replace Chinese parts with American alternatives
- In Reports
- 03:53 PM, Dec 08, 2023
- Myind Staff
G42, a prominent artificial intelligence company headquartered in the United Arab Emirates (UAE), has officially decided to cut ties with Chinese hardware suppliers in favour of their American counterparts.
This strategic move by G42 is interpreted as a direct response to the escalating geopolitical tensions surrounding emerging technologies. The company aims to ensure access to U.S.-manufactured chips, addressing concerns raised by key American partners, including Microsoft and OpenAI.
The CEO of G42, Peng Xiao underscored the imperative nature of this decision based on commercial considerations, stating, "Due to conflicting interests, we cannot simultaneously engage with both sides. We are compelled to make a choice."
As part of its commitment to assuring American partners and adhering to Washington's regulations on advanced chip exports, G42 has decided to sever ties with Chinese hardware suppliers, emphasizing its dedication to maintaining access to U.S.-manufactured chips.
Recent reports suggest that G42's extensive connections with China, sparking concerns among U.S. officials regarding the company's association with the telecom giant Huawei. There is apprehension that G42 might function as a conduit for the transfer of U.S. artificial intelligence technology and genetic data to the Chinese government and related entities.
Xiao has disclosed that G42 is gradually phasing out hardware from Huawei, including servers and data center networking gear. The company's objective is to distance itself from Chinese partnerships, aligning with the cautious approach recommended by the U.S. government to maintain its relationship with American partners.
G42, known for its Arabic large language model, boasts investments from prominent entities, including Mubadala, the Abu Dhabi sovereign wealth fund, and the U.S. private equity group Silver Lake. This decision to sever ties with certain Chinese connections reflects the broader competition between China and the U.S. in the rapidly advancing field of artificial intelligence.
Despite controversies surrounding G42, including alleged involvement in creating ToTok, a UAE chat app accused of government spying, the company asserts its positive contributions to AI governance, ethics, and regulation.
G42's collaborations with Sinopharm and BGI during the COVID-19 pandemic showcase its broad international network, asserted to be on par with other global tech firms. The UAE's strategic positioning in the evolving multipolar world and its quest for technological advancements pose challenges for companies like G42 in navigating the intricate landscape of global AI competition.
Image source: Financial Express
Comments