Microsoft's AI Collaboration Sparks National Security Fears Among US Policymakers

U.S. lawmakers caution Microsoft Corp MSFT against cozying up to China as it advances AI technology. 

Microsoft President Brad Smith expressed increased collaboration with China's digital transformation, raising concerns among lawmakers about national security risks posed by the tech giant's profound presence in China.

Smith's meeting with China's Minister of Commerce Wang Wentao prompted worries as it was disclosed that Microsoft, with about 10,000 employees in China, intends to play a prominent role in China's economic transformation, especially in AI, the New York Post reports.

Sens. Josh Hawley and Marsha Blackburn voiced concerns over Microsoft's collaboration with China, highlighting the risks of potential Chinese exploitation of advanced tech for adverse purposes.

While Microsoft insists on responsible AI development, critics, including Rep. Mike Gallagher, emphasize the risk factors and CCP's strict rules for U.S. companies operating in China, demanding awareness about technology control by Beijing.

This situation arrives amid U.S.-China tensions, intensifying as concerns about intellectual property theft and Taiwan's status escalate.

Though Microsoft portrays a commitment to ethical AI development and distances itself from certain technologies like facial recognition, its deep China ties raise suspicions regarding national security and potential technology transfer risks.

Microsoft's China operations have drawn parallels to other U.S. tech firms facing scrutiny over their Chinese connections, prompting lawmakers like Sen. Marco Rubio to reevaluate business ties with China. Concerns over China's use of AI and technology for repressive purposes against Uyghurs compound the growing unease among U.S. policymakers.

Nvidia Corp NVDA, dominating more than 90% of China's $7 billion AI chip market, revealed its collaboration with the U.S. government to guarantee compliance with recent export limitations for its new chips intended for the Chinese market.

Price Action: MSFT shares are trading lower by 0.18% at $374.00 premarket on the last check Wednesday.

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

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