AI Industry’s Ties To China Likely To Come Under Congressional Scrutiny

---

Artificial intelligence industry leaders who have openly stated a willingness to work on the emerging technology with China will testify to Congress on Thursday, likely facing a panel of U.S. senators urging them to instead pivot away from the global adversary.
At the Senate hearing put together by Sen. Ted Cruz (R-TX), “Winning the AI Race: Strengthening U.S. Capabilities in Computing and Innovation,” China is almost certainly going to be a central topic of discussion. When Cruz announced the hearing, he emphasized the competitive stakes in this global tech competition: “The way to beat China in the AI race is to outrace them in innovation, not saddle AI developers with European-style regulations.”
Cruz and his Senate colleagues will have the opportunity to grill industry leaders who are open to working with China, including: Brad Smith, vice chairman and president of Microsoft Corporation; Sam Altman, co-founder and CEO of ChatGPT-maker OpenAI; and Lisa Su, CEO of semiconductor company AMD.
For decades, Microsoft has maintained a “presence” in China, where co-founder Bill Gates once said there was an opportunity to tap into a “deep pool of intellectual talent.” Even after considering the risks of working on powerful technologies in China, the company kept it as a research hub.
The New York Times reported last year that, as tensions “mounted” between the United States and China “over which nations will lead the world’s technological future,” Smith and Microsoft chief executive Satya Nadella “debated” what to do with an AI lab in Beijing that “became one of the most important … in the world.”
Citing people familiar with the situation, the news outlet noted “the hypothetical risks are that China could hack or otherwise infiltrate the lab, or that its researchers could leave Microsoft to join Chinese companies that work closely with the government.”
According to the report, there were discussions about shutting down the lab or relocating it. However, four sources told The New York Times that Microsoft’s leadership supported continuing operations in China. Labs in Beijing as well as Shanghai remain listed on the official website for Microsoft Research Asia, as well as locations in Canada and Japan.
“We are as committed as ever to the lab and the world-class research of this team,” Peter Lee, president of Microsoft Research, said in a statement reported by the newspaper. “There has been no discussion or advocacy to close Microsoft Research Asia, and we look forward to continuing our research agenda.”
In another statement, Smith contended, “The lesson of history is that countries succeed when they learn from the world,” adding, “Guardrails and controls are critical, while engagement remains vital.”
OpenAI’s Altman has expressed willingness to collaborate with China on AI development.
In an interview with Sky News earlier this year, Altman said he would “like to work with China.” Asked if he believed the U.S. government would let him, Altman added, “Do I know that for sure? No. Should we try as hard as we can? Absolutely, yes. And I think that’s really important.”
Su, of AMD, spoke to CNBC’s “Squawk on the Street” on Wednesday about U.S. restrictions on exports of advanced AI technology to China. She emphasized that “probably the most important thing is that the U.S. leads in AI today” while contending that China is an “important” market.
“There should be a balance between export controls for national security as well as ensuring that we get the widest possible adoption of our technology because that’s a good thing for U.S. jobs and the U.S. economy,” Su said.
Cruz has long been an enemy of China, which even sanctioned him in 2020 over actions he took in the Senate against it. He said earlier this year that he has consistently urged President Donald Trump to keep the pressure on China.
“Everything we can do to de-link our economy from China’s economy is good for American national security and economic security,” Cruz said.
The Trump administration has called the race for building super computing technology to power artificial intelligence this era’s Manhattan Project.