Microsoft invests $1.5bn in UAE’s G42 to boost global AI and cloud capabilities
In a significant boost to the artificial intelligence (AI) and cloud services sectors, Microsoft Corp. has announced a strategic investment of $1.5 billion in G42, the leading UAE-based AI technology holding company. This investment will intensify the ongoing collaboration between the two companies, focusing on advancing Microsoft AI technologies and skilling initiatives across the UAE and globally. As a part of this agreement, Brad Smith, Vice Chair and President of Microsoft, will also join the G42 Board of Directors.
The partnership between Microsoft and G42 is set to bring state-of-the-art AI and digital infrastructure to countries in the Middle East, Central Asia, and Africa. This collaboration aims to provide equitable access to advanced technologies, addressing key governmental and business needs while maintaining the highest standards of security and privacy. G42 will leverage Microsoft Azure to run its AI applications and services and will jointly deliver advanced AI solutions to global public sector clients and large enterprises.
This enhanced collaboration is backed by a robust security and compliance framework, adhering to world-class standards for the safe and responsible development and deployment of AI technologies. An Intergovernmental Assurance Agreement (IGAA) has been established between G42 and Microsoft, developed in close consultation with both the UAE and US governments, ensuring adherence to international trade, security, and business integrity laws.
The partnership is not just a technological alliance but also a strategic move to foster economic growth and innovation in the region. With Microsoft’s investment, G42 is poised to enhance its international market presence, combining its unique AI capabilities with Microsoft’s extensive global infrastructure. This collaboration is expected to unlock new opportunities for customers and partners, accelerating innovation and empowering nations to advance their digital agendas.
Additionally, the partnership will support the development of a skilled and diverse AI workforce in the UAE and beyond, with a significant $1 billion earmarked for a development fund for developers. This initiative aims to drive competitiveness and innovation in the region, equipping professionals with the necessary skills to thrive in an increasingly digital economy.
The strategic investment by Microsoft in G42 is a landmark development for the AI and cloud sectors, indicating a strong future for tech collaborations that span continents. This partnership not only enhances the capabilities of both companies but also sets a precedent for how global tech giants can effectively collaborate with regional leaders to foster technological advancement and economic growth. The commitment to secure and responsible AI development is particularly noteworthy, as it aligns with global efforts to ensure that technology serves humanity responsibly and ethically.
As Microsoft and G42 continue to expand their partnership, the implications for the global technology landscape are profound. This collaboration is set to reshape how AI and cloud services are deployed and utilized across significant parts of the world, offering a blueprint for future international technology partnerships.