Microsoft is continuing its AI-related investments with a $1.5 billion investment in G42, an AI holding company based in the United Arab Emirates. Founded in 2018, G42 has a variety of companies across industries such as healthcare, oil and gas, and finance. The investment demonstrates Microsoft’s strategic move in the AI race and highlights the credibility of the Middle East tech ecosystem. The Wall Street Journal described G42 as a company aiding the digital transformation of the Abu Dhabi economy with the government’s support.
G42 has faced scrutiny from U.S. officials due to its ties with China, and it has announced plans to reduce its presence in the country. The deal with Microsoft, orchestrated with the assistance of the Biden administration, aims to counter China’s technological influence in the Gulf region and beyond. As part of the deal, G42 will no longer use Huawei telecom equipment, and Microsoft will have a minority stake in the company. Microsoft President Brad Smith will join the board of G42, reinforcing the commitment to safe, trusted, and responsible AI development.
The partnership between Microsoft and G42 includes running AI applications and services on Microsoft Azure and collaborating to deliver advanced solutions to global clients. Both companies will support a $1 billion fund for AI developers in the UAE and the broader region. Microsoft’s previous significant AI investments include a $13 billion investment in OpenAI, as well as hiring key executives from Inflection.ai as part of a $650 million deal. OpenAI CEO Sam Altman has met with UAE officials to discuss potential collaborations in the AI industry, showcasing Microsoft’s commitment to expanding its AI reach and partnerships.
Overall, Microsoft’s investment in G42 demonstrates the company’s continued focus on expanding its AI capabilities and partnerships, particularly in regions such as the Middle East. The deal highlights the growing importance of AI in various industries and the need for safe and responsible development. By partnering with G42 and supporting AI developers in the UAE and the broader region, Microsoft is positioning itself to lead in the increasingly competitive AI race. The involvement of government support and backing further emphasizes the importance of responsible AI development in a global context.
