Microsoft, the leading American multinational technology corporation, has announced a hefty investment of $1.5 billion in the UAE’s renowned artificial intelligence company, G42. This strategic investment grants Microsoft a minority stake and a seat on the board of directors.
Microsoft’s investment in G42 is a testament to its commitment to accelerating the development and accessibility of artificial intelligence. The company’s vision converges with G42’s mission to enhance AI applications and services, making this partnership a powerful union of technological prowess.
Under this partnership, G42 will leverage Microsoft’s cloud computing platform, Azure, to drive its AI applications and services. This collaboration promises to deliver cutting-edge AI solutions to a global clientele, comprising public sector clients and large-scale enterprises.
“We will combine world-class technology with world-leading standards for safe, trusted, and responsible AI, in close coordination with the governments of both the UAE and the United States,” stated Microsoft President, Brad Smith.
The companies plan to work in sync to augment AI and digital infrastructure across the Middle East, Central Asia, and Africa. This collaboration is set against the backdrop of Washington’s efforts to counter Beijing’s technological advancements.
G42 had previously divested its investments in China and commenced the arduous task of removing Chinese hardware from its operations. This decision was influenced by US concerns over G42’s business relationships in China.
In a significant move, Microsoft and G42 have pledged to support the establishment of a $1 billion fund. The primary objective of this fund is to enhance AI skills in the UAE and the broader region, boosting AI development and application.
The partnership agreement includes a series of protections for AI products shared with G42. An essential clause in the agreement stipulates the removal of Chinese gear from G42’s operations.
In line with the agreement, G42 will discontinue the use of Huawei telecom equipment. The US administration has raised concerns that Huawei equipment could potentially offer a backdoor to Chinese intelligence agencies.
Over the past year, G42 and Azure have collaborated on multiple occasions. G42 has announced its plans to use Microsoft’s Azure data centers as part of its AI infrastructure. This move is expected to catalyze regional adoption of AI solutions.
