Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

Eye On AI: Microsoft’s G42 Deal Could Bring More AI Money, Tech To UAE

Apr 18, 2024 - news.crunchbase.com
Microsoft has made a significant $1.5 billion investment in UAE-based AI firm G42, marking the largest private round for an AI startup this year. This move is part of Microsoft's ongoing strategy to invest in AI firms, with recent deals involving Inflection AI, Figure, and Mistral AI. The G42 deal, however, has raised concerns due to the UAE's strengthening ties with China and G42's own Chinese connections. Despite these issues, the companies have committed to developing AI in both the U.S. and UAE. The investment also includes a new $1 billion developer fund to foster AI talent and innovation in the region.

Despite the influx of UAE sovereign wealth funds into U.S. startups, U.S. firms have been less active in investing in UAE-based startups, with only 18 U.S.-based firms participating in deals with UAE companies this year. Microsoft's minority stake in G42 could potentially increase these investment numbers, and the company's new developer fund is expected to spur more tech investments in the region, particularly in AI. The partnership also involves G42 using Microsoft's cloud services for its AI applications, marking a win for both parties.

Key takeaways:

  • Microsoft has made a $1.5 billion strategic investment in United Arab Emirates-based artificial intelligence firm G42, marking the biggest private round to go to an AI startup this year.
  • The deal has raised concerns due to G42's Chinese ties and the strengthening relationship between some Middle Eastern countries and China.
  • Alongside the investment, a new $1 billion developer fund will be established to create an AI workforce and drive innovation in the region.
  • Microsoft's minority stake in G42 could potentially increase investment numbers in the region and encourage more tech investments, particularly in AI.
View Full Article

Comments (0)

Be the first to comment!