Microsoft announced in a statement on Tuesday that it will invest $1.5 billion in G42, an artificial intelligence company based in the United Arab Emirates.
Microsoft President Brad Smith, who will take a seat on G42’s board, confirmed the investment plan.
The investment will strengthen the UAE’s standing as a major base for AI worldwide as the corporations hope that by working together, developing economies around the world will be able to benefit from secure AI technologies and cloud capabilities.
G42, founded in 2018, consists of numerous businesses across a range of sectors, such as banking, oil & gas, and healthcare.
The company was characterised as “a private company that is single-handedly aiding the digital transformation of Abu Dhabi economy with the blessing of its government” by the Wall Street Journal in 2021.
US officials have been closely examining G42 because of its connections to China. According to Bloomberg, G42 said in February that it will reduce its presence in the nation.
Smith said, “We will combine world-class technology with world-leading standards for safe, trusted, and responsible AI, in close coordination with the governments of both the UAE and the United States.”
The partnership is anticipated to grow to offer the UAE and other nations the newest Microsoft AI technologies and skill-building programmes. The advantages of AI and the cloud would be available to businesses of all sizes in new markets.
The businesses will give the Middle East, Central Asia, and Africa access to cutting-edge AI and digital infrastructure. These nations will have fair access to services, enabling them to handle significant economic and governmental issues while maintaining the highest levels of privacy and security.
Industry observers are intrigued by the deal’s specifics, but neither Microsoft nor G42 have made an official statement regarding the rumoured investment.
We earlier reported earlier talks that are underway for MGX, a tech investment business, launched with founding members G42 and Mubadala (Abu Dhabi), to invest in the chip venture of OpenAI, the maker of ChatGPT.
The Financial Times verified on Friday that MGX is considering investing in Sam Altman’s company’s AI chip project.