Microsoft invests $1.5 billion in AI firm G42, takes minority stake

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107384853 1709913052647 gettyimages 2041810945 k0a2109 woostyll

Microsoft is investing $1.5 billion in G42, an artificial intelligence firm based in the United Arab Emirates, to strengthen its technology position amid growing competition. Microsoft President Brad Smith will join G42’s board of directors as part of the investment, expanding their existing partnership. G42 will utilize Microsoft Azure cloud service for its AI applications and services, and offer their Arabic language model, Jais, through Azure.

The deal includes U.S. and UAE government assurances for secure and responsible AI development. G42 Chairman Sheikh Tahnoon bin Zayed Al Nahya, who is also the UAE’s national security advisor, is involved. The agreement follows scrutiny on G42’s China ties, with allegations of links to blacklisted Chinese firms like Huawei and collaboration with China’s military and intelligence services. G42 denied these allegations, stating their alignment with U.S. partners and avoidance of Chinese companies since 2022.

The Microsoft-G42 partnership will benefit the UAE’s tech industry, positioning the country as a vital technology hub in the Middle East. A $1 billion fund for developers in the UAE and the region will support the growth of skilled AI professionals. The UAE’s regulatory framework for AI has garnered praise from industry experts, with the country being seen as a testing ground for AI technologies.

Microsoft is investing $1.5 billion into G42, an AI firm based in the UAE, to strengthen its position in the technology sector amid rising competition. Microsoft President Brad Smith will join the board of directors of G42, expanding their existing partnership. G42 will run its AI applications on Microsoft Azure and deploy Microsoft’s cloud offerings. The deal is backed by assurances to comply with US and international laws, with government involvement from the US and UAE. The UAE government has been trying to establish itself as a technology hub, and the Microsoft-G42 deal will boost this effort. Additionally, Microsoft and G42 will set up a $1 billion fund to support the development of a skilled AI workforce in the UAE and the broader region.

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