Microsoft Pumps $1.5 Billion into UAE's G42 for AI Boost and Expansion
Microsoft Corporation has made a strategic investment of $1.5 billion in G42, an artificial intelligence company based in Abu Dhabi, aiming to advance AI development and foster global expansion. This collaboration is expected to bolster the UAE's position as a key hub for AI innovation and offer growth opportunities to partners and customers internationally. As part of the deal, Microsoft President Brad Smith will join the G42 board, highlighting the importance of the partnership.
The agreement includes G42's commitment to use Microsoft's Azure cloud services for its AI applications and services, enhancing both companies' offerings in the AI space. Furthermore, an Intergovernmental Assurance Agreement has been established as part of the partnership, setting high standards for AI safety and security globally. This comes alongside G42's move to divest Chinese hardware from its operations, addressing security concerns raised by the U.S. government.
Both firms are set to contribute to a $1 billion fund aimed at supporting developers, with the goal of bringing AI and digital infrastructure services to underrepresented nations. The financial terms of the investment were not disclosed, but the partnership aligns with the strategic interests of the UAE and U.S. governments, signifying a concerted effort to expand Microsoft's influence in the AI sector and counterbalance China's presence in the Gulf region.
