- Microsoft plans to invest $1.5 billion in UAE-based artificial intelligence company G42, as the US giant looks to strengthen its position in the technology sector.
- Microsoft President Brad Smith will join G42's board of directors. The investment expands on an existing partnership between the two companies, with Microsoft taking a minority stake.
- This agreement is unusual because the government is heavily involved in the wake of the United States' intense investigation of the G42 over suspected ties with China.
Microsoft President and Chief Legal Officer Brad Smith speaks at Microsoft's annual shareholder meeting on November 29, 2017 in Bellevue, Washington.
Microsoft plans to invest $1.5 billion in UAE-based artificial intelligence company G42, as the US giant looks to strengthen its position in the technology sector amid increasing competition.
Microsoft President Brad Smith will join G42's board of directors. The investment expands on an existing partnership between the two companies, with Microsoft taking a minority stake.
G42 runs AI applications and services on Microsoft Azure cloud services and deploys Microsoft cloud products.
G42 operates data centers and sells AI applications. The company has developed a large-scale language model for Arabic called Jais, which is delivered via Azure.
G42 China relations in focus
This contract itself is extremely unusual. According to the paper, the commercial partnership is a “first-of-its-kind, binding agreement between the U.S. and UAE governments to apply world-class best practices to ensure the safe, reliable and responsible development and deployment of AI.” “This is backed by a guarantee.” Microsoft.
The US and UAE governments appear to be deeply involved in this agreement.
“Both companies continue to advance our commitment to complying with U.S. and international trade, security, responsible AI, and business integrity laws and regulations,” Microsoft said in a statement.
“Work on these topics is governed by detailed government-to-government assurance agreements between the G42 and Microsoft, developed in close consultation with both the UAE and US governments.”
G42 Chairman Sheikh Tahnoun bin Zayed Al Nahya is also the UAE's National Security Adviser.
The government's involvement comes after months of scrutiny of the G42's relationship with China. Rep. Mike Gallagher (R-Wis.), chairman of the U.S. Select Committee on the Chinese Communist Party, told the Commerce Department in January to “take a hard look” at whether the G-42 should be included on the trade export blacklist. I asked for it.
Gallagher claims G42 maintains relationships with blacklisted Chinese companies, including Huawei, and collaborates with China's military and intelligence services.
In January, the G42 “categorically” denied the allegations.
“In the field of advanced technology, we have been pursuing a commercial strategy since 2022 of fully collaborating with our US partners and not engaging with Chinese companies,” the company said at the time.
G42 itself is reportedly investing in Chinese companies, including TikTok owner ByteDance.
Improving UAE’s technological capabilities
The agreement between Microsoft and G42 will be a major boost for the UAE as it seeks to establish itself as a major technology hub in the Middle East, particularly in areas such as artificial intelligence and cryptocurrencies.
OpenAI CEO Sam Altman said in February that the UAE could serve as the world's “regulatory sandbox” for testing AI; It appears to be a compliment to the country's rules.
Microsoft and G42 on Tuesday announced the creation of a $1 billion fund for developers in the UAE and wider region to help develop a skilled AI workforce.
