Microsoft Invests $1.5 bn in UAE AI Firm G42 to Bolster Tech Ties

Microsoft is set to make an investment of $1.5 billion in G42, an artificial intelligence firm based in the United Arab Emirates (UAE).
Microsoft storesG42 will be utilizing Microsoft’s Azure cloud services to power G42’s AI applications, as part of the agreement. The collaboration underscores Microsoft’s strategic positioning in the region and G42’s ambition to leverage advanced AI capabilities for regional development.

Microsoft has already made significant investment in AI including a stake in ChatGPT maker OpenAI in order to attract customers. Microsoft did not reveal the size of its minority stake in G42.

Microsoft and G42 will support the establishment of a $1 billion fund for developers. The US-based software company did not reveal its contribution for the $1 billion fund for AI developers.

Microsoft President Brad Smith, slated to join G42’s board, highlighted the importance of upholding rigorous standards for AI innovation in close collaboration with the governments of the UAE and the United States.

Notably, the agreement includes safeguards to protect AI products shared with G42, including measures to exclude Chinese equipment from the Emirati firm’s operations, addressing concerns over potential security vulnerabilities.

G42 and Microsoft have outlined plans to expand their AI and digital infrastructure initiatives across the Middle East, Central Asia, and Africa, aiming to foster technological advancement and regional adoption. Leveraging Microsoft’s Azure data centers, G42 seeks to enhance its AI infrastructure and accelerate innovation in key sectors.

Sheikh Tahnoon bin Zayed Al Nahyan, Chairman of G42, hailed Microsoft’s investment as a pivotal moment in the company’s growth trajectory, highlighting the strategic alignment between the two organizations.

Baburajan Kizhakedath

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