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Microsoft will invest $1.5 billion in G42, the United Arab Emirates’ leading artificial intelligence company, reinforcing the Abu Dhabi firm’s commitment to reducing its presence in China. As part of the deal, Microsoft President Brad Smith will join the board of directors of G42 which will use the US software maker’s Azure cloud for its artificial intelligence applications. Smith and G42 CEO Peng Xiao said in an interview that the deal, an expansion of an existing partnership between the two companies, was developed in consultation with the governments of the United Arab Emirates and the United States.
A deal with the approval of governments
“Microsoft has received strong encouragement from the U.S. government to move forward with this process,” Smith said. “This reflects the U.S. government’s recognition of the importance of the relationship between the two countries and the importance of continuing to encourage responsible companies like G42 and Microsoft to truly lead the way, not just in technology itself, but also with regards to safety and security standards and responsible AI globally.”
One billion fund for developers
G42, which has been a leader in the UAE’s push into AI, has businesses ranging from cloud computing to driverless cars. It is part of the $1.5 trillion empire of the UAE’s national security advisor, Sheikh Tahnoon bin Zayed Al Nahyan. The investment gives Microsoft a minority stake in G42, said Xiao, who declined to disclose financial terms or say how much G42 will spend on the Washington state company’s cloud services. Microsoft and G42 will also create a $1 billion fund for developers.
Bringing Ai and cloud to the global south
In a later phase of the deal, Microsoft will host some of its own applications in G42’s data centers and use the relationship as a means to reach customers in Africa and Central Asia, Smith said. “Today there are markets where Microsoft and no American technology company have a real presence in data centers,” the manager said. “This is the kind of partnership that can really bring cloud and AI to the Global South probably a decade earlier than would otherwise be the case.”
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