Microsoft will invest $1.5 billion in UAE-based artificial intelligence firm G42, giving the US tech giant a minority stake and a seat on the board, the companies said in a statement on Tuesday.

Under the partnership, G42 will run its AI applications and services on Microsoft’s cloud computing platform Azure to provide advanced AI solutions to global public sector customers and large enterprises.

Brad Smith, President of Microsoft, who will take a seat on the board of the G42, said, “We are committed to developing 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.” Will add.” State.”

The companies will work together to bring advanced AI and digital infrastructure to countries in the Middle East, Central Asia and Africa.

The partnership comes amid Washington’s efforts to hamper Beijing’s technological progress, with the US adding four Chinese companies to an export blacklist seeking to acquire AI chips for China’s military.

G42 had sold its investments in China and begun the long task of exiting Chinese hardware amid US concerns over its relationships with Chinese businesses.

Microsoft and the G42 will support the establishment of a $1 billion fund for developers to boost AI skills in the UAE and the wider region.

The New York Times, which first reported the partnership, said the deal places a series of protections on AI products shared with G42, including an agreement to remove Chinese gear from the Emirati firm’s operations. The newspaper said the G42 would stop using Huawei telecom equipment, leading the US to fear it could prove to be a backdoor to Chinese intelligence agencies.

G42 and Azure have collaborated several times in the past year, and G42 said it will use Microsoft’s Azure data centers as part of its AI infrastructure to boost regional adoption.


(Only the headline and image in this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

first published: 16 April 2024 | 12:10 pm First


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