To expand its artificial intelligence (AI) business, Microsoft announced that it will invest $1.5 billion in G42, an artificial intelligence company headquartered in the United Arab Emirates, giving the US giant a minority stake and a board seat, allowing the two companies to deepen their efforts in the field of artificial intelligence connect. The battle for global tech dominance. Artificial intelligence has become a buzzword over the past few years, with companies around the world racing to take advantage of the technology.
As part of the deal, G42 will use Microsoft cloud services to run its artificial intelligence applications, the companies said, adding that the deal had security guarantees from the U.S. and UAE governments, Reuters reported.
Artificial Intelligence Partner
The collaboration comes amid efforts by Washington to impede Beijing’s technological advances, with the United States putting four Chinese companies on an export blacklist as they seek to obtain artificial intelligence chips for China’s military. The United States is also concerned about deepening ties between China and Gulf states, including the United Arab Emirates.
In February this year, the G42 said that due to U.S. concerns about its relationship with Chinese companies, the G42 had given up investments in China and began the long task of withdrawing Chinese hardware and accepting U.S. restrictions on its cooperation with U.S. companies.
Microsoft and G42 said in separate statements on Tuesday that the assurances they made to the U.S. and UAE governments were the first of their kind and were designed to ensure the safe, trustworthy and responsible development and deployment of artificial intelligence. Microsoft says it’s binding. The size of Microsoft’s stake was not disclosed.
Abu Dhabi sovereign wealth fund Mubadala and U.S. private equity firm Silver Lake hold stakes in G42, whose chairman Sheikh Tahnoon bin Zayed Al Nahyan is a UAE national Security adviser and brother of the president.
Microsoft President Brad Smith, who will serve on the G42 board of directors, said: “We will coordinate closely with the UAE and the UAE government to align world-class technology with world-leading standards for safe, trustworthy and responsible artificial intelligence. Combined.”
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The New York Times said the deal provides a series of protections for artificial intelligence products shared with G42, including an agreement to exclude Chinese equipment from the UAE company’s business. The newspaper said the G42 would stop using Huawei telecommunications equipment, which the United States fears could provide a backdoor for Chinese intelligence agencies.
G42 and Microsoft said they will work together to bring advanced artificial intelligence and digital infrastructure to countries in the Middle East, Central Asia and Africa.
The two companies have collaborated multiple times over the last year, with G42 saying it would use Microsoft’s Azure data centers as part of its artificial intelligence infrastructure to boost regional adoption.
G42 CEO Peng Xiao previously worked for a company owned by UAE cybersecurity company DarkMatter, which hired former spies and contracted with the UAE cybersecurity agency.
Sheikh Tahnoon said in a G42 statement: “Microsoft’s investment in G42 marks a key moment in our company’s growth and innovation journey and signals the strategic alignment of vision and execution between the two organizations.”
(With information from Reuters)
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