Key Points:
- Microsoft is investing $1.5 billion in UAE-based AI firm G42 to strengthen its technology position. Microsoft’s President will join G42’s board of directors.
- Both companies are committed to the secure, trusted, and responsible development and deployment of AI technologies.
- G42 will utilize Microsoft Azure cloud services for its AI applications and services, enhancing deployment capabilities.
- Microsoft and G42 plan to establish a $1 billion fund to support the development of skilled AI professionals in the UAE and the broader region.
Microsoft has announced a significant investment of $1.5 billion into G42, an artificial intelligence company based in the United Arab Emirates, as part of its strategic efforts to enhance its foothold in the technology sector amidst increasing competition. Brad Smith, President of Microsoft, will join the board of directors of G42 as the U.S. tech giant deepens its collaboration with the UAE firm, acquiring a minority stake in the process.
The investment expands Microsoft’s existing partnership with G42. The AI company plans to use Microsoft Azure cloud service to run its AI applications and services and deploy Microsoft’s cloud offerings. Notably, G42 has developed a large Arabic language model named Jais, which will be available through Azure.
What sets this deal apart is the unprecedented assurance provided to the U.S. and UAE governments regarding the secure, trusted, and responsible development and deployment of AI technologies. Microsoft emphasized that the commercial partnership is backed by a binding agreement to adhere to world-class best practices in AI development and deployment.
G42’s Chairman, Sheikh Tahnoon bin Zayed Al Nahyan, who also serves as the UAE’s national security advisor, underscores the government’s involvement in the deal. This involvement comes amid scrutiny of G42 over its alleged links to Chinese firms, including Huawei, prompting calls for examination by U.S. authorities.
However, G42 has vehemently denied these allegations, emphasizing its commitment to aligning with U.S. partners and refraining from engaging with Chinese companies in advanced technologies since 2022. Despite past investments in Chinese firms like ByteDance, G42 asserts its focus on collaboration with U.S. partners.
For the UAE, the Microsoft-G42 deal signifies a significant stride in establishing itself as a prominent technology hub, particularly in areas like artificial intelligence and cryptocurrency. In line with this, Microsoft and G42 have pledged to establish a $1 billion fund to support developers in the UAE and the wider region and foster the development of a skilled AI workforce.
