Microsoft invests $1.5 billion in UAE's AI company G42
What's the story
Microsoft has announced a substantial investment of $1.5 billion in G42, the leading artificial intelligence company in the United Arab Emirates (UAE).
This strategic move is part of a broader agreement that will also see Microsoft President Brad Smith join G42's board.
As part of this deal, G42 will utilize Microsoft's Azure cloud for its AI applications.
Partnership expansion
Extension of existing collaboration between Microsoft and G42
The investment marks an extension of the existing partnership between Microsoft and G42, which was established in consultation with the UAE and US governments.
This development follows discussions between the US government and G42, where G42 agreed to shift its focus from China toward American technology.
The talks were facilitated by the US Commerce Department's Bureau of Industry and Security, leading to an agreement last year.
Strategic shift
G42's commitment to scale down operations in China
Under the agreement with the US government, G42 is committed to reducing its operations in China.
G42, a leader in the UAE's AI sector, operates businesses ranging from cloud computing to autonomous vehicles.
The company is part of Sheikh Tahnoon bin Zayed Al Nahyan's $1.5 trillion empire.
In the next phase of the deal, Microsoft intends to host some of its applications in G42's data centers.
This partnership will be leveraged to serve customers in Africa and Central Asia.