Microsoft Corp. (NASDAQ:MSFT) has announced a $1.5 billion investment in the United Arab Emirates’ leading artificial intelligence firm, G42. The investment will also secure Microsoft a seat on G42’s board, indicating a strategic shift towards strengthening G42’s commitment to reducing its presence in China.
What Happened: The investment deal was inked by Microsoft President Brad Smith and G42 CEO Peng Xiao, with the backing of the UAE and U.S. governments. The agreement entails G42’s use of Microsoft’s Azure cloud for its AI applications, reported Bloomberg.
Smith will join G42’s board, marking an expansion of the existing partnership between the two companies. Smith stated, “Microsoft got strong encouragement from the U.S. government to move forward in this process.” The investment grants Microsoft a minority stake in G42, although the exact financial terms remain undisclosed, according to the report.
"There are markets today where Microsoft and really no American technology company has a real data center presence," Smith said. "This is the kind of partnership that can really bring the cloud and AI to the global south probably a decade faster than would otherwise be the case."