Image: © Rastislav Sedlak SK/Stock.adobe.com
As part of the deal, the companies will establish a $1bn fund to boost the AI skills of developers in the country and the broader Middle East and North Africa region.
Microsoft will invest $1.5bn in Abu Dhabi-based AI company G42, as president Brad Smith joins its board of directors.
Announced yesterday (15 April), the deal will give Microsoft a minority stake in the company, which is currently the leading AI firm in the United Arab Emirates (UAE). It marks a significant expansion of Microsoft’s AI presence in the Middle East and strengthens ties between the US and UAE.
Judson Althoff, executive vice-president and chief commercial officer at Microsoft, said that the commercial partnership is backed by assurances to the US and UAE governments through a “first-of-its-kind binding agreement” to apply best practices to ensure the “secure, trusted and responsible” development and deployment of AI.
“Microsoft and G42 will work closely together to elevate the security and compliance framework of their joint international infrastructure,” Althoff said.
“Both companies will move forward with a commitment to comply with US and international trade, security, responsible AI, and business integrity laws and regulations. The work on these topics is governed by a detailed Intergovernmental Assurance Agreement between G42 and Microsoft that was developed in close consultation with both the UAE and US governments.”
As part of the deal, the companies will establish a $1bn fund for developers to boost AI skills in the country and the broader Middle East region.
“Our two companies will work together not only in the UAE, but to bring AI and digital infrastructure and services to underserved nations,” added Smith.
Growing investments
Microsoft, now the world’s most valuable company, has been rapidly expanding its AI investment programme around the world.
Earlier this month, the software giant is opening a new AI hub in London that is to be led by former Inflection and DeepMind scientist Jordan Hoffman. This came months after its largest-ever investment in the UK with a commitment of £2.5bn over the next three years to expand its AI data centre footprint in the country.
Last week, Microsoft said it will pump nearly $2.9bn into Japan over the next two years to increase its AI and cloud infrastructure and invest in the digital skills of its population. The company will also open its first Microsoft Research Asia lab in the country in Tokyo amid plans to digitally upskill around 3m people in AI.
Now, G42 will run its AI applications and services on Microsoft Azure and work on new solutions for the public sector and large enterprises across a range of industries, including finance, healthcare, energy and education.
Sheikh Tahnoon bin Zayed Al Nahyan, chair of G42, said that Microsoft’s investment marks a “pivotal moment” in the company’s journey of growth and innovation, signifying a “strategic alignment of vision and execution” between the two organisations.
“This partnership is a testament to the shared values and aspirations for progress, fostering greater cooperation and synergy globally,” he said.
Find out how emerging tech trends are transforming tomorrow with our new podcast, Future Human: The Series. Listen now on Spotify, on Apple or wherever you get your podcasts.
