Microsoft has invested $1.5 billion in Abu Dhabi-based artificial intelligence (AI) company G42.
This investment is the latest in a series of collaborations for the company and the latest example of the United Arab Emirates (UAE)'s growing importance in the AI space.
“Building on both organizations' long-standing collaboration on AI and digital transformation efforts, Microsoft's investment deepens our mutual commitment to this strategic partnership,” the companies said in a Tuesday, April 16, news release. ” he said.
“G42 will run AI applications and services on Microsoft Azure, partnering to deliver advanced AI solutions to public sector customers and large enterprises around the world.”
The two companies will also work together to provide advanced AI and digital infrastructure to countries in the Middle East, Central Asia, and Africa, giving these countries the ability to “help governments and businesses while ensuring the highest standards of security and privacy.” “Provide equitable access to services that address important concerns of people.'' ” states the release.
The partnership will also see Microsoft President Brad Smith join the G42 board, and the companies will create a $1 billion fund for AI developers.
“Our two companies will work together to bring AI and digital infrastructure and services to underserved countries, not just the UAE,” Smith said. “We will work closely with the governments of both the UAE and the United States to combine world-class technology and world-leading standards for safe, reliable and responsible AI.”
Earlier this year, OpenAI CEO Sam Altman said the UAE could serve as a “regulatory sandbox” to experiment with AI and develop global rules for its use. said. He emphasized the need to test AI in a controlled environment before introducing regulations.
Bloomberg News reported at the time that the UAE's relationship with China had raised some concerns in the United States' Group of 42, which said it would reduce its presence in China to address those concerns.
Meanwhile, PYMNTS wrote last month about the potential for AI to reshape industries and drive economic expansion in the Middle East, saying the region could capture 2% of total global AI benefits, or roughly $320 billion, by 2030. He pointed to a PwC study predicting that this could be the case.
“Successful AI development efforts will not only spark a wave of regional creativity and innovation, including new start-ups, and attract generations of students to the field, but will also spread the resulting prosperity throughout the region, creating a regional It can counter imbalances and democratize the knowledge economy. It attracts the brightest talent,” geopolitical analyst Irina Zukerman said in an interview with PYMNTS.
