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

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 in Abu Dhabi, UAE. With the deal going through, G42 will now run its services on Microsoft Cloud.

According to the official blog post, the partnership had the backing of the UAE and the US governments. After the deal, Microsoft President Brad Smith gets a seat on G42’s Board of Directors. The blog further reads,

G42 will expand its existing commitment to deploying Microsoft Cloud offerings, demonstrating confidence in Microsoft as its preferred partner to enhance services and deliver value-added solutions to its customers. With the partnership, G42’s data platform and other essential technology infrastructure will migrate to Microsoft Azure to benefit from industry-leading performance, scalability and security capabilities.

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

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 to Japan Today.

A Forbes report says that the deal hints at improving ties between the US and UAE, and the former trying to stay ahead of China in the AI race.

The New York Times reports that under the agreement, G42 will cease to deploy Huawei telecom 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 by Sheikh Tahnoon bin Zayed of the royal family, will be able to expand operations at an even faster rate with support from Microsoft.

The Redmond-based tech giant Microsoft 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.