Microsoft pours $1.5b into UAE-based AI firm G42

(From left) Brad Smith, vice chair and president of Microsoft; HH Sheikh Tahnoon bin Zayed Al Nahyan, chairman of G42; and Peng Xiao, CEO of G42 / Photo credit: G42

Microsoft has invested US$1.5 billion in G42, an AI company based in the United Arab Emirates, broadening its reach into the Middle East and North Africa region. The deal builds upon the two companies’ partnership that was formed last year.

As part of the deal, Brad Smith, president of Microsoft, will join G42’s board of directors.

Both companies will also work together to bring their AI services into the Middle East, Central Asia, and Africa. The main aim is to equip these areas with top-level AI and digital infrastructure, and provide them with widespread access to key services that can address “important governmental and business concerns.”

The two firms will also set aside a US$1 billion development fund for developers in the UAE and broader regions.

“Our two companies will work together not only in the UAE, but to bring AI and digital infrastructure and services to underserved nations,” said Smith, in a statement.

Over the past year, Microsoft and G42 have introduced sovereign cloud offerings and launched G42’s Jais Arabic large language model on Azure AI Cloud.

In October 2023, G42 also announced a partnership with OpenAI, the AI research giant behind ChatGPT, to deliver more AI solutions to the UAE and regional markets.

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