Abu Dhabi is Playing Both Sides with AI

Abu Dhabi is Playing Both Sides with AI

Abu Dhabi is Playing Both Sides with AI

Dec 4, 2023

Dec 4, 2023

Dec 4, 2023

Abu Dhabi-based G42 is the leading AI company out of the Middle East. The company is closely tied to the government with Tahnoun bin Zayed Al Nahyanthe, National Security Advisor of the UAE, as the company’s chairman and controlling shareholder.

Recently, US officials have raised concerns that G42 is being used as a channel for China to get a hold of US technology and intelligence, and potentially even the genetic data of millions of Americans. The New York Times broke the bombshell story on White House concerns that the company may be feeding information to China and considers its ties to Chinese companies, most notably tech giant Huawei, which is at the core of G42 technology infrastructure, as a national security concern. Biden officials have put pressure on G42 leadership to cut ties with Chinese companies, which the firm has rejected. This summer the Biden administration held internal discussions about potentially sanctioning the firm.

The US has been investigating G42 CEO Peng Xiao, an American who renounced his citizenship to become a UAE citizen. The CIA issued a classified report on Xiao, which Xiao himself has said he’s seen but “hasn’t finished reading”. This isn’t the first time Xiao has popped up on the radar of American intelligence agencies. In 2019, social media app ToTok, was identified as a spy tool for the Emirati government by US intelligence after it was found to be tracking the location and conversations of users. That data was being stored by UAE firm Pax AI, which Xiao controlled.

Following The Times report, which Xiao said he also hasn’t read, he responded to data security concerns at Fortune Global Forum in Abu Dhabi saying, “We make sure there is no leakage of sensitive information from our data center link in the U.S. If the U.S. counterparts ever share any data with us, we are accountable for ensuring that data is kept safe and sound here.”

But G42 has been playing both sides, working with both American and Chinese companies. In 2021, US private equity firm Silver Lake announced an $800m investment in G42. Since then, the company has inked deals across US industries - announcing strategic partnership with US pharmaceutical giant AstraZeneca, Microsoft, Dell and OpenAI. It’s also working with Silicon Valley chipmaker Cerebras, investing $100m to create the “world’s largest supercomputer”.

In addition to its relationship with Huawei, G42 purchased $100m of shares in ByteDance, TikTok’s parent company. Presight AI, a G42 subsidiary that sells surveillance technology to police forces worldwide, has come under the microscope of US officials who are concerned that the software looks nearly identical to surveillance tech that is popular with Chinese police. If Presight AI is selling white-labeled Chinese tech, it could give China unprecedented visibility to sensitive government data across the world.

In light of the complex web of international concerns surrounding G42 and its CEO, it’s evident that the company's actions and affiliations have triggered significant national security discussions. The ties between G42, Chinese entities, and the potential implications for US technology and intelligence have raised alarms. Despite the company's assurances of data security, questions linger about its dual engagements with American and Chinese firms. As this situation continues to unfold, the scrutiny on G42's activities underscores the importance of vigilance and transparency in the global technology landscape, as nations grapple with the challenges posed by the broader landscape of AI collaboration and data protection on the international stage.

Abu Dhabi-based G42 is the leading AI company out of the Middle East. The company is closely tied to the government with Tahnoun bin Zayed Al Nahyanthe, National Security Advisor of the UAE, as the company’s chairman and controlling shareholder.

Recently, US officials have raised concerns that G42 is being used as a channel for China to get a hold of US technology and intelligence, and potentially even the genetic data of millions of Americans. The New York Times broke the bombshell story on White House concerns that the company may be feeding information to China and considers its ties to Chinese companies, most notably tech giant Huawei, which is at the core of G42 technology infrastructure, as a national security concern. Biden officials have put pressure on G42 leadership to cut ties with Chinese companies, which the firm has rejected. This summer the Biden administration held internal discussions about potentially sanctioning the firm.

The US has been investigating G42 CEO Peng Xiao, an American who renounced his citizenship to become a UAE citizen. The CIA issued a classified report on Xiao, which Xiao himself has said he’s seen but “hasn’t finished reading”. This isn’t the first time Xiao has popped up on the radar of American intelligence agencies. In 2019, social media app ToTok, was identified as a spy tool for the Emirati government by US intelligence after it was found to be tracking the location and conversations of users. That data was being stored by UAE firm Pax AI, which Xiao controlled.

Following The Times report, which Xiao said he also hasn’t read, he responded to data security concerns at Fortune Global Forum in Abu Dhabi saying, “We make sure there is no leakage of sensitive information from our data center link in the U.S. If the U.S. counterparts ever share any data with us, we are accountable for ensuring that data is kept safe and sound here.”

But G42 has been playing both sides, working with both American and Chinese companies. In 2021, US private equity firm Silver Lake announced an $800m investment in G42. Since then, the company has inked deals across US industries - announcing strategic partnership with US pharmaceutical giant AstraZeneca, Microsoft, Dell and OpenAI. It’s also working with Silicon Valley chipmaker Cerebras, investing $100m to create the “world’s largest supercomputer”.

In addition to its relationship with Huawei, G42 purchased $100m of shares in ByteDance, TikTok’s parent company. Presight AI, a G42 subsidiary that sells surveillance technology to police forces worldwide, has come under the microscope of US officials who are concerned that the software looks nearly identical to surveillance tech that is popular with Chinese police. If Presight AI is selling white-labeled Chinese tech, it could give China unprecedented visibility to sensitive government data across the world.

In light of the complex web of international concerns surrounding G42 and its CEO, it’s evident that the company's actions and affiliations have triggered significant national security discussions. The ties between G42, Chinese entities, and the potential implications for US technology and intelligence have raised alarms. Despite the company's assurances of data security, questions linger about its dual engagements with American and Chinese firms. As this situation continues to unfold, the scrutiny on G42's activities underscores the importance of vigilance and transparency in the global technology landscape, as nations grapple with the challenges posed by the broader landscape of AI collaboration and data protection on the international stage.

Abu Dhabi-based G42 is the leading AI company out of the Middle East. The company is closely tied to the government with Tahnoun bin Zayed Al Nahyanthe, National Security Advisor of the UAE, as the company’s chairman and controlling shareholder.

Recently, US officials have raised concerns that G42 is being used as a channel for China to get a hold of US technology and intelligence, and potentially even the genetic data of millions of Americans. The New York Times broke the bombshell story on White House concerns that the company may be feeding information to China and considers its ties to Chinese companies, most notably tech giant Huawei, which is at the core of G42 technology infrastructure, as a national security concern. Biden officials have put pressure on G42 leadership to cut ties with Chinese companies, which the firm has rejected. This summer the Biden administration held internal discussions about potentially sanctioning the firm.

The US has been investigating G42 CEO Peng Xiao, an American who renounced his citizenship to become a UAE citizen. The CIA issued a classified report on Xiao, which Xiao himself has said he’s seen but “hasn’t finished reading”. This isn’t the first time Xiao has popped up on the radar of American intelligence agencies. In 2019, social media app ToTok, was identified as a spy tool for the Emirati government by US intelligence after it was found to be tracking the location and conversations of users. That data was being stored by UAE firm Pax AI, which Xiao controlled.

Following The Times report, which Xiao said he also hasn’t read, he responded to data security concerns at Fortune Global Forum in Abu Dhabi saying, “We make sure there is no leakage of sensitive information from our data center link in the U.S. If the U.S. counterparts ever share any data with us, we are accountable for ensuring that data is kept safe and sound here.”

But G42 has been playing both sides, working with both American and Chinese companies. In 2021, US private equity firm Silver Lake announced an $800m investment in G42. Since then, the company has inked deals across US industries - announcing strategic partnership with US pharmaceutical giant AstraZeneca, Microsoft, Dell and OpenAI. It’s also working with Silicon Valley chipmaker Cerebras, investing $100m to create the “world’s largest supercomputer”.

In addition to its relationship with Huawei, G42 purchased $100m of shares in ByteDance, TikTok’s parent company. Presight AI, a G42 subsidiary that sells surveillance technology to police forces worldwide, has come under the microscope of US officials who are concerned that the software looks nearly identical to surveillance tech that is popular with Chinese police. If Presight AI is selling white-labeled Chinese tech, it could give China unprecedented visibility to sensitive government data across the world.

In light of the complex web of international concerns surrounding G42 and its CEO, it’s evident that the company's actions and affiliations have triggered significant national security discussions. The ties between G42, Chinese entities, and the potential implications for US technology and intelligence have raised alarms. Despite the company's assurances of data security, questions linger about its dual engagements with American and Chinese firms. As this situation continues to unfold, the scrutiny on G42's activities underscores the importance of vigilance and transparency in the global technology landscape, as nations grapple with the challenges posed by the broader landscape of AI collaboration and data protection on the international stage.

Subscribe for free.

Subscribe for free.