G42 CEO assures UAE can ensure the safety and security of U.S.-made chips.

• Peng Xiao, CEO of UAE AI firm G42, assured CNBC on Tuesday that the UAE can ensure the safety and security of chips when they are deployed and used in the country.
• The U.S. is reportedly considering restrictions on advanced chip sales to the Middle East due to concerns that the technology could fall into the hands of Beijing.
• This month, Sheikh Tahnoon, G42 Chairman, and Xiao were part of a delegation led by UAE President Mohammed bin Zayed al Nahyan to Washington.

The CEO of the UAE's top AI company emphasized the country's commitment to safeguarding sensitive technology, stating that the Gulf state is a dependable ally to the US in this regard, amid reports that Washington is considering restrictions on chip sales to certain countries, including those in the Middle East.

Peng Xiao, CEO of UAE AI firm G42, assured CNBC at a conference in Dubai on Tuesday that the UAE can guarantee the safety and security of chips when they are deployed and used in the country.

According to Bloomberg, the administration of President Joe Biden is considering restrictions on chip sales to the Middle East due to concerns that American technology and intellectual property could fall into the hands of China.

Xiao, in an interview with CNBC, stated that while they cannot read the minds of U.S. policymakers, they understand their perspective in many ways.

We have demonstrated our transparency and ability to ensure the safety and security of the technology from the UAE side, he stated.

I believe that our two countries will collaborate more, share more technology, and jointly develop AI as the door opens up for us to do a lot more.

The CEO did not provide additional details on the security measures being taken for potential chip imports. CNBC has reached out to the company for more information.

G42, a UAE-based artificial intelligence company, has previously been warned by the United States about its ties to China and its work with companies in Beijing, which Washington considers a possible security threat. In February, the group sold its stake in Chinese companies including Bytedance in an effort to reassure American partners. Earlier this year, CNBC spoke to G42's Chief Technology Officer Kiril Evtimov about the company's decision to cut ties with China, which Evtimov described as a commercial and technological decision.

In April, Microsoft signed a $1.5 billion deal with Abu Dhabi's G42, signifying a significant nod of approval for the UAE's AI ambitions. Last month, UAE President Mohammed bin Zayed al Nahyan led a delegation to Washington, which included Xiao and G42 Chairman Sheikh Tahnoon.

The UAE and U.S. issued a joint statement on AI cooperation, expressing their mutual goal to enhance collaboration in AI and related technologies and to establish a government-to-government memorandum of understanding on AI between the two countries.

Xiao stated to CNBC that the bilateral relationship between the U.S. and UAE at the government-to-government level is unbreakable.

The UAE is moving at a rapid pace in the development of advanced technologies and artificial intelligence, and is closely aligned with the US in this regard.

The UAE's sovereign wealth funds, such as the Abu Dhabi Investment Authority and Mubadala, have already invested $1 trillion in the U.S. in real estate, infrastructure, and technology sectors.

The UAE could serve as a "regulatory sandbox" for testing AI, as OpenAI CEO Sam Altman stated in February.

In the region, the UAE is not the only country with AI aspirations. Saudi Arabia is also striving to obtain the cutting-edge U.S.-made technology, specifically the Nvidia H200s, which are used in OpenAI's GPT-4o.

A top official at the Saudi Data and AI Authority, Abdulrahman Tariq Habib, stated in mid-September that he anticipates the kingdom becoming optimistic within the next year.