The deal between Microsoft and G42, backed by their respective governments, will see Microsoft become G42's official cloud partner, with G42's data platform and other key technology infrastructure migrating to Microsoft Azure. This is seen as part of G42's efforts to reduce its Chinese influence. In return, Microsoft gains extensive market access to the region, where its AI business and Azure will be implemented across various industries. The partnership also includes a $1 billion fund to boost AI skills in the UAE and the broader region.
Key takeaways:
- Microsoft has announced a $1.5 billion strategic investment in G42, an Abu Dhabi-based company that is a major player in the United Arab Emirates’ AI ambitions, giving Microsoft's vice chair and president a seat on G42’s board of directors.
- The investment comes amid concerns from U.S. politicians about G42's ties with China, with calls for the company to be included on the Entity List, which would prevent it from accessing sensitive U.S. technologies.
- The deal between Microsoft and G42 is backed by assurances to the U.S. and UAE governments to apply best practices for the secure and responsible development and deployment of AI, with Microsoft becoming G42’s official cloud partner.
- The partnership will also launch a $1 billion fund for developers to boost AI skills in the UAE and the broader region, marking a significant move in the tech war between the U.S. and China.