The United Arab Emirates (U.A.E.) has acknowledged the validity of U.S. concerns regarding the potential diversion of advanced chip technologies to China, as stated by Omar Al Olama, U.A.E.’s Minister for Artificial Intelligence and Digital Economy.

This acknowledgment comes amid heightened scrutiny by the U.S. to prevent cutting-edge semiconductor technologies from bolstering China’s military capabilities.

During a recent interview with Bloomberg Television, Al Olama highlighted the geopolitical challenges faced by the U.A.E. due to its strategic location.

The U.S. has imposed limitations on chip exports to the Middle East, particularly due to fears that these technologies could end up in Chinese hands through regional data centers.

This is part of a broader initiative by President Joe Biden’s administration aimed at restricting China’s access to advanced semiconductor manufacturing equipment.

Al Olama emphasized the U.A.E.’s longstanding partnership with the U.S., highlighting its role as a strategic ally, particularly in technological advancements.

The U.A.E is actively seeking U.S. support to develop its semiconductor production capabilities, which is essential for the burgeoning artificial intelligence sector in the region.

In April, a significant step was taken when Microsoft Corp. MSFT invested $1.5 billion in the U.A.E.’s leading AI company, G42, following negotiations that included assurances to pivot away from Chinese technology.

This investment underscores the deepening ties between the U.S. and U.A.E. in technological collaborations.

G42 has also partnered with OpenAI, maker of ChatGPT, to expand its presence in the Gulf, demonstrating the U.A.E.’s commitment to integrating with global AI developments.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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