G42 sits at the intersection of competing technology relationships. The Abu Dhabi AI and cloud computing company works with Chinese firms such as Huawei and US companies including Microsoft and Dell Technologies. US intelligence agencies are investigating whether those connections could create security risks.
The concerns reach beyond the company’s partnerships. US officials have questioned whether G42 could become a route for advanced US technology to reach Chinese companies or the government, and intelligence reports warn of potential risks to genetic data. G42 says it protects information shared by partners, while its CEO has also acknowledged limits to that control once data or models reach customers.
Why US officials are concerned
A New York Times report says National Security Adviser Jake Sullivan raised concerns about G42’s possible cooperation with Chinese companies, including Huawei, during a visit by Sheikh Tahnoon bin Zayed, his counterpart from the United Arab Emirates (UAE). The company is based in the UAE and controlled by Sheikh Tahnoon bin Zayed.
US officials are concerned that G42 could serve as a conduit for advanced US technology to reach Chinese companies or the government. G42 works with major Chinese companies that US officials consider security threats; Huawei is subject to US sanctions.
Intelligence reports also warn that G42’s business relationships with Chinese companies could put the genetic data of millions of Americans and others in the hands of the Chinese government, according to two officials familiar with the reports. The report does not establish that such a transfer has occurred; it describes a risk cited by intelligence officials.
Pressure over partnerships and leadership
The Biden administration has expressed concern about G42 and its management in recent months. It urged the company to cut ties with Chinese companies and authorities, and officials raised the possibility of sanctions.
According to the New York Times report, discussions took place in Washington and Abu Dhabi. Participants included CIA Director William J. Burns and Commerce Secretary Gina Raimondo. Tarun Chhabra, director for technology at the National Security Council, also raised concerns with officials in Abu Dhabi.
US intelligence agencies investigated G42 CEO Peng Xiao. The CIA produced a classified profile of Xiao, who was educated in the US and renounced his American citizenship in favour of that of the United Arab Emirates. The conclusions of that document are not public, according to the New York Times.
G42’s position in a technology contest
The scrutiny reflects broader US efforts to limit China’s access to advanced technology, including artificial intelligence. The Biden administration imposed export restrictions on chip manufacturers and other relevant technology companies to keep advanced chip technologies from reaching China and Russia. Concerns that China could obtain technology through third countries or use it locally led to an extension of bans to certain Middle Eastern countries in August.
G42’s position is complex because its relationships span both sides of that contest. Alongside its work with Huawei, it has partnerships with Microsoft and Dell Technologies. Since mid-October, it has also partnered with OpenAI.
The company is building the Condor Galaxy, described as one of the world’s fastest AI supercomputers, using Cerebra’s AI chips. Jais, an Arabic language model, is among the first AI models trained on Condor Galaxy 1. US authorities have raised concerns that parts of G42’s technological infrastructure were built with help from Chinese companies, including Huawei.
Replacing infrastructure and protecting data
Talal Al Kaissi, a senior G42 executive, said the company has worked with “various international technology companies from around the world”. Talks with Microsoft to replace its technology stack and infrastructure have been ongoing since the end of last year.
This year, G42 turned to US companies including Cerebras and Nvidia to upgrade its supercomputers and move away from a “legacy technology supplier that included Chinese hardware”. Those changes address the hardware question, though they do not by themselves resolve every concern officials have raised about partnerships, data, or how technology is used.
CEO Xiao addressed the report at the Fortune Global Forum in Abu Dhabi on Wednesday. He said he had seen it but had not finished reading it. “it’s correct that we all need to pay attention to the proper development of AI, and ultimately what we use AI for.”
He said G42 protects data when it works with partners around the world: “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,” he told Fortune.
He also described a limit to that accountability once data or models reach customers: “The challenge is when data or models get to your clients, your customer’s hands, where you don’t have that type of control anymore.” That distinction captures a central issue in the dispute: protecting information inside a company’s own systems may not settle questions about how customers use or handle it afterward.