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Letter to Secretary Raimondo on AI Firm Ties to PRC Military

January 9, 2024
Letters

Rep Mike Gallagher (R-WI), Chairman of the House Select Committee on the Chinese Communist Party, sent a letter to Commerce Secretary Gina Raimondo raising serious concerns about export control risks for Emirati artificial intelligence firm, Group 42 Holdings (G42), and their extensive business relationships with Chinese military companies, state-owned entities, and the PRC intelligence services. The letter calls on Commerce to closely examine G42 and its subsidiaries for inclusion on the Bureau of Industry and Security (BIS) Entity List.

The Chairman writes, "According to documents reviewed by the Committee, G42’s CEO Peng Xiao operates and is affiliated with an expansive network of UAE and PRC-based companies that develop dual-use technologies and materially support PRC military-civil fusion and human rights abuses."

The Select Committee's investigation into G42 also found that:

  • G42 maintains relationships with blacklisted entities including Huawei and Beijing Genomics Institute (BGI).
  • Multiple U.S. companies that develop and sell export-controlled technology and products maintain extensive commercial relationships with G42 and its subsidiaries, to include Microsoft, Dell, and OpenAI, which leaves these companies susceptible to CCP directed IP theft.
  • G42-linked companies and executives are affiliated with a PRC scientist who stole millions of dollars of American military-funded research from UCLA in order to create a new PRC government laboratory in Beijing. The letter raises concern that he could also steal American technology and research on behalf of G42.

Click HERE to view the letter.

Issues: Critical Infrastructure/Cyber