Microsoft is planning to invest \(1 billion, while the United States government has agreed to invest \)5 billion in an Abu Dhabi-based artificial intelligence firm amid the escalating technical competition between the U.S. and China.
Brad Smith, the chief legal officer and president of Microsoft, announced in a blog post that the collaboration with G42 aims to enhance global artificial intelligence relations, emphasizing the importance of maintaining high standards for trustworthy and reliable AI technology.
Smith highlighted the joint efforts of Microsoft and G42 to deliver AI solutions to underserved regions worldwide, expanding beyond the UAE. As part of the partnership, Smith will also join G42’s board of directors.
The negotiations between Microsoft, the U.S. government, and G42 have been ongoing for more than a year, with a focus on ensuring the exclusion of Chinese products from G42’s operations due to concerns regarding Huawei products.
In response to the growing tensions between the U.S. and China in the AI sector, the agreement signifies a strategic move by an American tech giant to assert influence in the burgeoning AI industry of the UAE.
Lawmakers have expressed optimism about the deal’s potential to advance U.S. industrial leadership, emphasizing the importance of safeguarding intellectual property rights while promoting American technology and values.
G42 initiated discussions with Microsoft in late 2022 to seek professional support from a larger technology company, aiming to enhance its global presence through leveraging Microsoft’s cloud infrastructure.
Microsoft’s recent strategic partnerships with smaller AI companies, such as the investment in ChatGPT maker OpenAI, have solidified its position as a leader in the AI revolution. These collaborations, including the partnership with European firm Mistral, have enabled Microsoft to showcase its technical innovation prowess on a global scale.
The agreement between Microsoft and G42 will enable G42 to expand its global footprint by utilizing Microsoft’s cloud infrastructure, particularly in developing AI solutions that meet stringent security requirements for government users.
G42’s engagement with the U.S. Commerce Department and Microsoft in 2023 led to the development of AI tools on Microsoft’s Azure cloud platform. Notably, Microsoft made G42’s Arabic AI language unit, Jais, available on its cloud platform, further strengthening their collaboration.
However, G42’s close ties to China have raised concerns, prompting congressional scrutiny and calls for export controls on G42 and affiliated companies due to alleged associations with activities supporting the Taiwanese military and human rights violations. Additionally, concerns were raised about Xiao’s past involvement with DarkMatter, a UAE-based company known for developing surveillance equipment with potential privacy implications.
