Microsoft invests $1.5 billion in G42, marks AI push in Middle East, Central Asia and Africa

Industries in the region expected to benefit from the collaboration

2 min. read

Published onApril 18, 2024

published onApril 18, 2024

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In a bid to expand its footprints in the region, Microsoft announced investments to the tune of $1.5 billion in G42, an AI giant headquartered inAbu Dhabi,UAE. With the deal going through, G42 will now run its services onMicrosoft Cloud.

According to theofficial blog post, the partnership had the backing of the UAE and the US governments. After the deal, Microsoft PresidentBrad Smithgets a seat on G42’sBoard of Directors. The blog further reads,

G42 was also quick to share the news on itsofficial X(previously Twitter)handleand called it a step towards UAE becoming a global AI hub.

We are excited to announce a $1.5 billion investment from@Microsoftin G42, marking a significant step forward in our journey to lead in#AIinnovation globally.pic.twitter.com/XJ0Q4WiZta

The deal is expected to aid industries in the Middle East, Central Asia, and Africa in harnessing the true potential of Artificial Intelligence and Microsoft Cloud.

G42’s past dealings with China

Ever since Microsoft made its investments in G42 public, the latter’s past dealings with China have been widely reported. G42 had to cut ties with China for the deal with Microsoft to go through. It has previously been accused of spying, according toJapan Today.

AForbesreportsays that the deal hints at improving ties between theUSandUAE, and the former trying to stay ahead of China in the AI race.

The New York Timesreportsthat under the agreement, G42 will cease to deployHuaweitelecom equipment in operations, which the USA believes could be exploited by China to access critical data.

Beyond all the concerns, the deal will prove beneficial to both companies and countries. Going forward, G42, headed bySheikh Tahnoon bin Zayedof the royal family, will be able to expand operations at an even faster rate with support from Microsoft.

The Redmond-based tech giantMicrosoft is also aiming for AI solutions in industries. And to cement its position as the leader in the AI landscape,Microsoft is acquiring 1.8 million AI chips!

What do you think about the implications of Microsoft’s $1.5 billion investments in G42? Share with our readers in the comments section.

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Microsoft invests $1.5 billion in G42, marks AI push in Middle East, Central Asia and Africa

G42’s past dealings with China