Microsoft invests 1.5 billion dollars in Emirati artificial intelligence G42
US multinational Microsoft has decided to take a step forward and will invest $1.5 billion in the UAE’s G42 AI. The decision comes on the back of several studies that place G42 as one of the artificial intelligences with the greatest impact on the national economy.
From the Emirati side, the investment has been warmly welcomed. This is because of G42’s important role in the UAE’s smart cities programme, which in turn is in line with the national strategy’s goals of attracting as much investment as possible.
Part of the investment deal in UAE artificial intelligence company G42 is a minority stake and a seat on the board of directors, which would allow the two companies to strengthen their relationship amid a global battle for technological supremacy. As part of this expanded partnership, Brad Smith, vice president and president of Microsoft, will join G42’s board of directors.
In two official statements, Microsoft and G42 described their engagement with the governments of Washington and Abu Dhabi as the first agreement of its kind to ensure the safe, reliable and responsible development and deployment of artificial intelligence.
G42 has taken the lead in promoting the introduction of artificial intelligence technology in the UAE, and the company’s work spans everything from cloud computing to autonomous vehicles. Last year, the company launched the $10bn 42X fund to invest in technology companies in emerging markets.
The new partnership comes amid US efforts to limit China’s technological advances, with the US blacklisting four Chinese companies seeking to provide artificial intelligence chips for the Chinese military. The US is similarly concerned about strengthening economic ties between China and Gulf countries, including the United Arab Emirates.
Given Washington’s concerns about G42’s ties with Chinese firms, the company began long-term negotiations in February to halt investment in the world’s second-largest economy and sell Chinese equipment, while limiting cooperation with US companies.
As an unwritten part of the US investment contract is the cessation, by Emirati companies, of Huawei’s purchase of telecommunications equipment due to US speculation that China is clandestinely providing intelligence equipment to the Chinese military.
Sheikh Tahnoon bin Zayed al-Nahyan, chairman of G42, said: “Microsoft’s investment in G42 is a significant moment in our company’s growth and transformation journey and demonstrates the strategic alignment of vision and execution between our two organisations. This partnership is a testament to our shared values and ambitions for progress that will foster greater collaboration and synergies on a global scale”.
One of the common goals of the investment is to work together to build advanced and infrastructural IA in countries in the Gulf, Middle East, Central Asia and Africa.
The two companies have collaborated before, so the transfer of data and the implementation of G42 in Microsoft’s cloud will facilitate the expansion of new projects across the Gulf region.
According to a study conducted by the US company, almost 70% of fast-growing companies in the Gulf countries plan to implement this technology this year to improve their decision-making processes. On the other hand, 45% of low-growth companies plan to use AI for the same purpose, exceeding the global average of 31%.
