In other news, Santa Clara-based chip startup Rivos raised over $250 million in a Series A-3 funding round led by Matrix Capital Management. The company, which develops power-optimized chips for data analytics and generative AI markets, is part of a growing trend of chip startups attracting significant investment. Last month, Celestial AI raised $175 million in a Series C round, while Astera Labs saw its shares soar following its Nasdaq IPO.
Key takeaways:
- Microsoft has announced a $1.5 billion investment in United Arab Emirates-based artificial intelligence firm G42, marking the biggest new round to go to an AI startup this year.
- The deal comes with assurances to both U.S. and UAE governments to apply best practices for the secure and responsible development of AI, following negotiations for G42 to divest from China and pivot to American technology.
- This is Microsoft's third-largest investment in an AI company, and is part of the company's strategy to become the dominant tech power in AI.
- As part of the partnership, G42 will use Microsoft’s cloud services to run its AI applications.