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China, The US, And The Battle For Middle Eastern Technology
The US is changing its approach to dealing with China's technology statecraft in the Middle East. The recent Microsoft-G42 deal offers a new model for technology competition that helps to secure American technologies while accommodating its partners' aspirations.
China's engagement with the Middle East is intimately intertwined with its broader global competition with the United States, which is increasingly evolving into a profound struggle for supremacy among great powers. Technological innovation has become a flashpoint in this struggle, and the rivalry has driven mutual incremental measures aimed at advancing what is commonly referred to as "technological decoupling" — a process of reducing asymmetrical dependencies and, in certain instances, disentangling the technological and cyber domains altogether. As the repercussions of this process continue to unfold, the Middle East finds itself gradually assuming a pivotal role, ensnared in the rivalry between Beijing and Washington.
With US-China competition heating up, some regional actors are choosing to make their strategic alignment on critical technologies, such as 5G, artificial intelligence (AI), and unmanned systems, clear — a trend illustrated by the mid-April Microsoft-G42 deal, in which the US tech giant agreed to invest $1.5 billion in the Abu Dhabi-based technology holding company, a growing player in the AI market. The deal's scalability, governance, and guardrails make it a governance model that could be used with other Gulf states when it comes to AI collaboration.
Technology as a driver of the new Middle East
While the perception of the Middle East as an energy-dependent region remains strong, it is undergoing a generational transformation to shift its economies away from a reliance on hydrocarbon exports. Technology plays a key role in driving this new Middle East. For years, the region's technological landscape has been heavily influenced by its economic and geopolitical entanglements with the United States and the broader West. However, with the resurgence of great power competition and the Middle East's concerted efforts to foster greater economic and technological autonomy, these dynamics are undergoing a gradual but profound transformation. China is becoming increasingly integrated into the regional technological ecosystem, much to Washington's dismay.
Amid ongoing scrutiny by the United States of Chinese technological influence over key partners in the Gulf, one company in particular has attracted the attention of American officials: the UAE's G42. Founded in 2018, the Emirati technology holding company describes itself as dedicated to advancing the capabilities and deployment of AI, both within the UAE and beyond. G42's companies cover a broad spectrum of industries, but each one features AI as a core facet of the business. For example, AIQ, a G42 holding, focuses on developing and commercializing AI products for the energy industry, while Bayanat and M42 apply AI to geospatial intelligence and healthcare, respectively. G42 also has a powerful investment arm, a tool it has used to acquire stakes in and secure joint ventures with foreign technology companies. The firm has extensive ties with Chinese tech entities, including partnerships with Huawei and BGI Genomics, raising concerns among some US officials about data privacy and security. The company has made significant investments in Chinese firms as well, including ByteDance, and operates a $10 billion investment fund with a Shanghai office.
G42's engagement with China should be understood in light of two primary factors: the UAE's pursuit of technological leadership in preparation for a post-oil era and China's emergence as a formidable technological power capable of producing critical technologies more affordably and with a greater willingness to share intellectual property and establish joint ventures. Rather than being driven by ideology, these factors reflect Abu Dhabi's pragmatic response to the changing global order and the evolving tech landscape. However, given the rapid shift in the bipartisan consensus in Washington on Beijing, any partnership with China is deemed unacceptable and intolerable in today's political climate.
Based on leaks emerging from Washington, there appears to be a significant effort underway to address the G42 situation. Policymakers view the Emirati firm as a proxy for a new digital order, where China is becoming increasingly embedded in the technological ecosystem of Washington's allies. If not confronted early on, the thinking goes, Washington may lack the power or influence to impact this trend in the long run. The US and the UAE have held discussions on the issue, as evidenced by National Security Advisor Sheikh Tahnoon bin Zayed's visit to DC and Commerce Secretary Gina Raimondo's visit to Abu Dhabi. Following these discussions, G42 has started to gradually phase out Chinese technologies. 42XFund, G42's $10 billion technology investment arm, announced that it had "divested from all its investments in China." G42 CEO Peng Xiao encapsulated the UAE's perspective, stating, "In order for us to further our relationship — which we cherish — with our US partners, we simply cannot do much more with [previous] Chinese partners."
Microsoft's recently unveiled $1.5 billion investment in G42, which is also chaired by the influential royal Sheikh Tahnoon, reflects the changing landscape of global technological cooperation. This substantial venture underscores more than Microsoft's strategic commitment to AI — it also highlights Abu Dhabi's choice, as it navigates the intensifying great power competition between the United States and China, to strategically align the UAE with US technology. In addition, the move is consistent with reports that Sheikh Tahnoon, during a diplomatic visit to Washington, expressed a desire to foster a framework for collaboration on AI.
The significance of the Microsoft-G42 deal strongly hints at the UAE's favorable positioning vis-a-vis the US over China in its ongoing effort to navigate the fierce competition between Washington and Beijing. Indeed, the deal indicates a choice by Abu Dhabi to align with Washington on critical technologies by replacing Chinese hardware and partnering with an American tech giant like Microsoft. As mentioned, the deal includes a "first of its kind" Intergovernmental Assurance Agreement (IGAA) between the two companies, which itself is the result of close — and likely protracted — consultation with both the US and UAE governments. The IGAA formalizes a pledge by Microsoft and G42 to enhance the security and compliance framework of their shared international infrastructure while committing to comply with US and international laws and regulations regarding trade, security, responsible AI, and business integrity. As part of this deal, Brad Smith, vice chair and president of Microsoft, will join the G42 board of directors, giving him more visibility on G42 operations, plans, and future trajectory.
A blueprint for engagement
During my recent testimony to the US-China Economic and Security Review Commission, I argued that this deal serves as a blueprint for engaging with other partners. It strikes a balance between safeguarding the US's critical technologies and assisting our partners in developing their own capabilities. If we fail to provide these technologies, our partners may turn to Beijing to acquire what they deem necessary for their national development. Viewing the Microsoft-G42 deal as a blueprint for further cooperation also amounts to an official recognition of the significant digital transformation underway in the UAE and the broader Gulf region, transcending traditional views of Gulf economies. Moreover, it underscores my recommendation for the necessity of a comprehensive framework for technological engagement with the UAE and Saudi Arabia. Such a framework should encompass dialogue on critical technologies concerning compliance and licensing. Additionally, the United States should also establish scientific collaboration through working groups and workshops to create a shared research agenda and finance joint scientific projects.
It is premature to label such commercial partnerships as an "AI alliance," given that countries, including the UAE, will pursue their own interests by seeking technologies that they deem critical for their security and national development. Nevertheless, the acceptance of guardrails — while quite different from forming a full-fledged alliance — is a mutually beneficial step forward in technological cooperation for the US, the UAE, and other partners in the region.
Mohammed Soliman is the director of MEI's Strategic Technologies and Cyber Security Program and a member of McLarty Associates' Middle East and North Africa Practice. His work focuses on the intersection of technology, geopolitics, and business in the Middle East and North Africa.
Photo by Waleed Zein/Anadolu via Getty Images
The Middle East Institute (MEI) is an independent, non-partisan, non-for-profit, educational organization. It does not engage in advocacy and its scholars' opinions are their own. MEI welcomes financial donations, but retains sole editorial control over its work and its publications reflect only the authors' views. For a listing of MEI donors, please click here.
XPENG Launches Industry's First AI-powered In-car OS, Promoting AI-enabled Smart Driving Experience
BEIJING, May 20, 2024 (GLOBE NEWSWIRE) -- XPENG Motors ("XPENG" or the "Company," NYSE: XPEV and HKEX: 9868), a leading Chinese smart electric vehicle ("Smart EV") company, today showcased its cutting-edge advancements in AI technology and announced the full rollout of the XOS 5.1.0, Tianji, in-car OS to all eligible XPENG models during the XPENG AI DAY event themed "Pioneering a new era of smart AI driving."
XPENG AI Day Press Conference asset library
At the press conference, XPENG Chairman and CEO He Xiaopeng also announced major news: "The first model of the MONA series will debut in June this year," and clearly outlined XPENG's new market positioning as the global pioneer and promoter of AI smart driving.
Unveiling the first in-car OS that integrates mass-produced end-to-end large model in China
Led by AI technology, the Chinese automotive market is undergoing a transformation from electrification to smartification. AI-powered smart vehicles are accelerating their evolution, offering more human-like decision-making and enhanced, safer driving experiences through end-to-end data iteration.
For XPENG, AI Smart EVs possess three core characteristics: Active learning, rapid growth, and personalized experiences.
The core technology involves feeding and training AI large models with unlimited rules to enhance their understanding, perception, and decision-making abilities in complex scenarios. Currently, XPENG has developed core algorithms for perception, positioning, planning, and decision-making, and established both vehicle-end and cloud-end data processing capabilities, enabling rapid algorithm iteration based on real data, and continuously providing users with enhanced autonomous driving capabilities through OTA updates.
XPENG's XNet, XPlanner and XBrain
XPENG has introduced China's first mass-produced end-to-end model for smart driving: The neural network XNet, the planning and control large model XPlanner, and the large language model XBrain. This integrated system enhances intelligent driving capabilities by two times.
The XNet deep visual neural network combines dynamic XNet, static XNet, and the industry's first mass-produced pure vision 2K occupancy network. This system empowers the autonomous driving system with capabilities comparable to LiDARs, using pure vision and creating a 3D naked-eye experience. The 2K pure vision network reconstructs the world with over 2 million grids, providing 3D representations of drivable spaces and clearly recognizing every detail of static obstacles. Its perception range is doubled, covering an area equivalent to 1.8 football fields, and can accurately identify over 50 types of objects to see further and clearer.
Moreover, XPENG has introduced the neural network-based planning model, XPlanner. XPlanner, like a human cerebellum, continually trains with vast amounts of data, making driving strategies increasingly human-like. This reduces driving jerks by 50%, improper stops by 40%, and passive human takeovers by 60%, providing an "experienced driver"-like smart driving experience that significantly enhances user comfort and safety.
With the introduction of the AI large language model architecture, XBrain, XPENG's autonomous driving system gains human-like learning and comprehension capabilities, significantly improving its handling of complex and even unknown scenarios as well as its reasoning and understanding of real-world logics. For example, with the support of XBrain, the autonomous driving system can recognize turn zones, tidal lanes, special lanes, and road sign text, as well as various behavioral commands such as stop and go, fast and slow. This enables it to make human-like driving decisions that balance safety and performance.
Based on over 1 billion kilometers of video training, more than 6.46 million cumulative kilometers of real-world testing, and over 216 million cumulative kilometers of simulation testing, XPENG's end-to-end large model can iterate every two days. In the next 18 months, smart driving capabilities are expected to improve by 30 times. By the third quarter of this year, XPENG aims to extend XNGP coverage to all roads in China, offering an urban smart driving experience that will rival its highly acclaimed highway smart driving by 2025.
Additionally, He Xiaopeng mentioned at the press conference: "By 2025, XPENG will achieve L4-level autonomous driving experience in China," and that XPENG is currently testing the end-to-end capabilities of XNGP globally, hastening the arrival of fully autonomous driving.
The previously released end-to-end large model has further validated XPENG's systematic capabilities in AI smart driving technology. Compared to relying on first-generation HD map coverage, XPENG's end-to-end large model and its mapless driving technology is ahead of the whole industry by two generations. The company plans to invest 3.5 billion renminbi in R&D and recruit 4,000 professionals in 2024, with an additional annual investment of 720 million renminbi in computing power training to accelerate the evolution and iteration of AI smart cars.
AI Tianji System XOS 5.1.0: The first step into the smart AI driving era
The AI Tianji System XOS 5.1.0, launched at this event, represents another pioneering field for XPENG in AI technology applications. It is the industry's first in-car OS to comprehensively apply AI technology to both smart cockpits and smart driving. Its advanced features ensure smooth experience all the time. After upgrades, average frame rates, first-frame responsiveness, and touch response speeds have all improved by over 30%, with application launch speeds up by 50%. User satisfaction during beta tests has exceeded 97%.
Fully integrated with AI large models, the AI Tianji System provides more intelligent and personalized in-car AI assistant services through its core functions: AI assistant Xiao P, AI Chauffeur, and AI Bodyguard, ensuring safer and more comfortable driving experiences, whether in smart driving or human driving modes.
Comprehensive smart cockpit experience
XPENG introduced the industry's first "all-domain large language model" for smart cockpits, in collaboration with Alibaba Tongyi Qianwen and Zhipu AI, deeply integrating AI large model capabilities into all driving scenarios. This system actively senses and infers user needs, easily achieving "hears commands, understands, and executes."
The new AI assistant Xiao P, based on the deep application of AI large models, is more human-like and understanding, providing concierge-level services through functions like Smart Reasoning, Smart Scheduling, In-car Encyclopedia, etc. For example, a user's simple command like "Remind me to watch my speed when I pass here" or "Wake me up in 20 minutes" can prompt precise service through Smart Scheduling accordingly. Smart Reasoning can deduce user needs from statements like "I'm a bit cold," inferring whether to adjust the air conditioning. Smart Creation and In-car Encyclopedia offer personalized companion experiences as a car steward, encyclopedia teacher, or creative assistant. Smart World View senses and understands the real surrounding environment, accurately assisting with user commands. With AI Chauffeur, XPENG becomes an intelligent ecosystem with external sensory capabilities, providing real-time information to ensure driving safety and convenience.
AI Chauffeur: Customizable, end-to-end smart driving experience
XPENG's AI Chauffeur offers comprehensive smart driving experiences covering all driving and parking scenarios with three core functions: AI Valet Driver, AI Parking, and AI Bodyguard, ensuring safer and more comfortable experiences in both smart driving and manual driving.
While the industry is still debating the "feasibility" of autonomous driving, XPENG is already focusing on the future of "personalized experiences." AI Valet Driver marks XPENG's first step toward "customized" and personalized smart driving.
XPENG launched AI Driver Valet at the event, the industry's first mass-produced "end-to-end" memory-based navigation smart driving. With robust self-learning capabilities, AI Valet Driver achieves "zero interventions and zero downgrades" on commuting routes, generating customized driving routes after just one learning session. Each user can store up to 10 memory routes, with each route up to 100 km long, ensuring smart and human driving experiences are equally proficient.
Facing challenges of narrow parking spaces, XPENG's AI Parking, the world's first mass-produced remote-free valet parking and auto summon feature, enables fully automated valet parking and rapid parking in multiple scenarios. This technology increases parking capabilities by three times and parking speed by 50%, effortlessly managing complex parking scenarios like side and dead-end parking. Combined with the mobile app, users can pause and resume parking at any time, making parking more efficient and enjoyable.
About XPENG
XPENG is a leading Chinese Smart EV company that designs, develops, manufactures, and markets Smart EVs that appeal to the large and growing base of technology-savvy middle-class consumers. Its mission is to drive Smart EV transformation with technology, shaping the mobility experience of the future. In order to optimize its customers' mobility experience, XPENG develops in-house its full-stack advanced driver-assistance system technology and in-car intelligent operating system, as well as core vehicle systems including powertrain and the electrical/electronic architecture. XPENG is headquartered in Guangzhou, China, with main offices in Beijing, Shanghai, Silicon Valley, San Diego and Amsterdam. The Company's Smart EVs are mainly manufactured at its plants in Zhaoqing and Guangzhou, Guangdong province. For more information, please visit https://www.Xpeng.Com/.
Contacts:
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PR Department
Email: pr@xiaopeng.Com
Source: XPENG Motors/Xmotors Limited
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Musk Plans Data Centre To Power Tesla's AI Ambition
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Tesla is moving forward with plans to power the global development of its self-driving system with data from China that could be processed within the nation, according to sources.
TakeAway Points:
According to the report, Tesla has been designing plans for a data centre in China to train the algorithm required for more fully autonomous vehicles.
The company has up until recently concentrated on trying to get Chinese regulators to approve the transmission of data produced by its EVs in China outside of the nation for its "Full Self Driving" (FSD) system.
It was unclear whether Tesla intended to move forward with data transmission and a local data centre, or if it was creating backup plans in case things did not work out, in order to handle self-driving data from China.
In a time when demand for EVs has decreased and competition has intensified, Tesla's actions highlight how quickly the manufacturer of electric vehicles has shifted its strategy to wager on an advancement in AI.
The manufacturer is attempting to enhance its artificial intelligence for driving by utilising more data from Chinese automobiles, a move that coincides with efforts by the US government to restrict the transfer of AI technology from American companies to Chinese ones.
The full version of FSD, which is priced at approximately $9,000, is not available from Tesla in China.
An expansion of the FSD market in China would help the automaker's earnings and sales at a time when both are under pressure from BYD and other Chinese competitors.
Telsa to Partner with Chinese for Data CentreAccording to two of the individuals, Tesla would need to collaborate with a Chinese partner in order to establish a data centre for FSD research in China. Another possible issue is finding hardware suppliers.
One of the people who was informed about the conversations said that it has had discussions with Nvidia over the purchase of graphics processing units for a data centre in China. The most cutting-edge chips from Nvidia and its partners cannot be sold in China because of U.S. Sanctions.
After Elon Musk met with Premier Li Qiang and other authorities during a quick trip to Beijing last month, Tesla's effort to leverage more data from China was put into high gear.
According to two of the sources, Musk wanted to expedite approval for Tesla's data transfer during his meeting with Li. They also mentioned the possibility of Tesla funding a data centre in China.
Musk also touched on the subject of Tesla potentially licencing its FSD technology to Chinese EV manufacturers. Without naming the company, Musk had stated in April that Tesla was in talks to licence FSD with another "big" automaker.
Impact in ChinaChina, the largest automobile market in the world, has the greatest fleet of sensor-equipped vehicles that can gather data from clogged cities with intricate traffic patterns. As a result, data gathered there is important to automakers and artificial intelligence companies.
According to two people, Musk had previously stated that he was against a data centre located in China, claiming that data transfer to the US was the most effective solution.
Tesla has kept data gathered from its Chinese electric vehicles in Shanghai since 2021. According to two people, Tesla's China team has been requesting permission from Chinese authorities to export data outside of the nation during that time.
Companies in Shanghai's Lingang Area—home of Tesla's factory—will be able to transfer specific data without requiring further security evaluations as part of a one-year pilot experiment, according to Reuters on Friday.
According to some analysts, Musk wants to use China as a testing ground for self-driving technology, much like how Tesla was able to become a successful mass-market electric vehicle manufacturer thanks to its 2019 wager on its Shanghai Gigafactory.
"It would definitely be a milestone for Tesla if it rolls out FSD in China and leverages the China data for algorithm training," said Yale Zhang, managing director at Shanghai-based consultancy Automotive Foresight.
"China had played a key role in scaling up EV production for Tesla with the Shanghai factory. It would again serve a significant part in scaling up mass adoption of autonomous driving technologies," he added.
Although estimates vary greatly, many industry experts believe it will take years before completely autonomous cars become the norm.
China's Level Two Driver AssistanceChina is now offering "level two" driver assistance functions, which means a driver must be prepared to take over. Level-two systems that demand careful driving include Tesla's FSD and its less sophisticated Autopilot alternatives.
Limited test zones are used by Pony.Ai, an autonomous driving startup, and Baidu, the largest search engine operator in China, to run fleets of more fully automated vehicles.
However, improved driver assistance systems and self-driving capabilities have become top priorities for Chinese EV manufacturers, such as BYD. Licences to test level-three systems, which enable drivers to take their hands off the wheel and gaze away on a greater variety of Chinese roads, have been granted to Mercedes and BMW.
Lawyers, state media sources, and experts claim that at least five automakers—Hyundai, Mazda, Toyota, Volkswagen, and Nissan—have permission to export a portion of their data outside of China. However, none of these permissions pertain to the use of data for AI system training.
Organisations that advocate for foreign companies operating in China claim that the penalties for breaking China's new data privacy regulations, which went into force in 2021, pose a serious risk to data operations.
Tesla to be seen as AI FirmDuring a conference call with investors following Tesla's quarterly results last month, Musk was asked about competition from Chinese EV manufacturers and said that Tesla should be seen more as an AI firm.
He expressed confidence in the FSD technology of Tesla, saying it will function "very effectively without modification in practically any market." According to Musk, it would function better with "country-specific" training.
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