Microsoft plans to invest $1.5 billion in AI firm G42 for the development of responsible AI
Microsoft has revealed plans to invest $1.5 billion in the UAE’s artificial intelligence company G42, securing a minority stake and a seat on the board. This move aims to strengthen the partnership between the two companies in the competitive landscape of AI technology. The global race for tech dominance has intensified in recent years, with AI emerging as a key focus for companies worldwide.
As part of a deal the two companies brokered for the US and UAE governments over security, G42 would use Microsoft cloud services to run its AI applications, according to Reuters.
AI partnership
The partnership comes amid Washington’s efforts to disrupt Beijing’s technological advances, with the United States adding four Chinese companies to an export blacklist for their efforts to procure artificial intelligence chips for China’s military. The United States has also been concerned about deepening relations between China and Gulf countries, including the United Arab Emirates.
With the United States concerned about its relationship with Chinese companies, G42 had divested itself of its investments in China and began the lengthy process of removing Chinese hardware, accepting U.S. restrictions on it working with U.S. companies, it said in February.
In separate statements on Tuesday, Microsoft and G42 described the assurances they gave to the US and UAE governments as the first agreement to guarantee the safe, reliable and responsible development and deployment of artificial intelligence. Microsoft said it was binding. The size of the stake taken by Microsoft was not disclosed.
Abu Dhabi’s sovereign wealth fund Mubadala and American private equity firm Silver Lake own a stake in G42, whose chairman Sheikh Tahnoon bin Zayed Al Nahyan is the UAE’s national security adviser and the president’s brother.
Microsoft President Brad Smith, who will join the G42 board, said: “We are combining world-class technology with world-leading standards for safe, reliable and responsible artificial intelligence, working closely with the governments of both the UAE and the United Arab Emirates. The United States.”
Contract details
The New York Times said the deal puts safeguards on AI products shared with the G42, including an agreement to remove Chinese equipment from the Emirati company’s operations. G42 will stop using Huawei’s telecommunications equipment, which the US fears will provide a backdoor to China’s intelligence services, the paper said.
G42 and Microsoft announced that they will jointly bring advanced artificial intelligence and digital infrastructure to countries in the Middle East, Central Asia and Africa.
The two companies have collaborated several times over the past year, and G42 said it uses Microsoft’s Azure data centers as part of its AI infrastructure to drive regional deployment.
G42 CEO Peng Xiao previously worked for a company owned by Emirati cybersecurity firm DarkMatter, which hired ex-spies and was contracted by the UAE Cybersecurity Agency.
“Microsoft’s investment in G42 marks a pivotal moment in our company’s journey of growth and innovation, marking a strategic alignment of vision and execution between the two organizations,” Sheikh Tahnoon said in a G42 statement.
(via Reuters feeds)
