Microsoft Makes $1.5 Billion Investment in UAE Artificial Intelligence Company G42
In a move that is seen as a vote of confidence in the United States amidst ongoing tensions in the Middle East, Microsoft announced on Tuesday a $1.5 billion investment in G42, the leading artificial intelligence company in the United Arab Emirates (UAE).
The decision to inject such a substantial amount of funds into G42 comes after the company, based in Abu Dhabi, signed an agreement with the United States to cease any collaboration with China, as reported by Bloomberg. This move solidifies G42’s commitment to American technology.
Microsoft President Brad Smith expressed that they received “strong support” from the United States to proceed with this investment, emphasizing the importance of the relationship between the two countries and the promotion of responsible companies like G42 that prioritize world-leading security and responsible AI standards.
G42, which is involved in various sectors ranging from cloud computing to driverless vehicles, is part of the portfolio of companies owned by Sheikh Tahnoon bin Zayed Al Nahyan, the US national security advisor and son of the UAE’s founder, Sheikh Zayed Bin Sultan Al Nahyan.
“This partnership marks a pivotal moment in our company’s growth and innovation journey, embodying a strategic alignment of vision and execution between the two organizations,” stated Tahnoon bin Zayed Al Nahyan. “It signifies shared values and aspirations for progress, fostering greater cooperation and synergy globally.”
The UAE’s ambition to become a global leader in artificial intelligence is evident in G42’s diverse interests in biotechnology, surveillance, healthcare, and data centers. The company is also backed by the UAE sovereign fund Mubadala.
Looking ahead, Microsoft plans to host some of its applications in G42’s data centers to expand its reach in Africa and Central Asia, as per Smith’s statement. G42, established in 2018, has collaborated with prominent firms such as OpenAI, Dell, IBM, Nvidia, Oracle, AstraZeneca, Illumina, and Mercedes.
The investment agreement was finalized during Smith’s recent visit to Abu Dhabi and is the result of a year of negotiations. Smith will join G42’s board of directors as part of the deal.
“This expanded collaboration will enable organizations of all sizes in new markets to leverage the benefits of AI and cloud while ensuring they adopt AI that meets the world‘s leading standards for safety and security,” a press release from G42 highlighted.
Through running its AI applications on Microsoft Azure, G42 aims to deliver advanced AI solutions to large enterprises and global public sector clients, in line with the standards set by the UAE and the US governments.
CEO of G42 Group, Peng Xiao, remarked, “Through Microsoft’s strategic investment, we are advancing our mission to deliver cutting-edge AI technologies at scale. This partnership significantly enhances our international market presence, combining G42’s unique AI capabilities with Microsoft’s robust global infrastructure. Together, we are not only expanding our operational horizons but also setting new industry standards for innovation.”
The collaboration between Microsoft and G42 underscores the growing significance of AI technology and the mutual benefits of such partnerships in driving innovation and progress on a global scale.