Microsoft has announced a major investment of $1.5 billion in Abu Dhabi-based firm, G42 with the aim of accelerating AI development.
The deal expands an existing collaboration between the companies and paves the way for the latest Microsoft AI technologies to be brought to the UAE and other countries.
It means that G42 will run its AI applications and services on Microsoft Azure and partner to deliver advanced AI solutions to global public sector clients and large enterprises, while the firms will work together to bring advanced AI and digital infrastructure to countries in the Middle East, Central Asia, and Africa.
Speaking on the deal, H.H. Sheikh Tahnoon bin Zayed Al Nahyan, Chairman of G42, said: “Microsoft’s investment in G42 marks a pivotal moment in our company’s journey of growth and innovation, signifying a strategic alignment of vision and execution between the two organizations. This partnership is a testament to the shared values and aspirations for progress, fostering greater cooperation and synergy globally.”
Additionally, the investment will support the development of a range of new skilling initiatives to broaden the AI workforce and talent pool while $1 billion will be used in a development fund for developers, Microsoft said. Brad Smith, Vice Chair and President of Microsoft, will also join the G42 Board of Directors.
First-of-its-kind agreement
The commercial partnership is reportedly backed by assurances to both governments through a first-of-its-kind agreement to apply world-best practices to ensure the secure, trusted, and responsible development and deployment of AI. Both companies have made a commitment to move forward by complying with US and international trade, security, responsible AI, and business integrity laws and regulations. The work on these topics is governed by a detailed Intergovernmental Assurance Agreement (IGAA) between G42 and Microsoft that was developed in close consultation with both the UAE and US governments.
Peng Xiao, Group Chief Executive Officer of G42, said: “This partnership significantly enhances our international market presence, combining G42’s unique AI capabilities with Microsoft’s robust global infrastructure. Together, we are not only expanding our operational horizons but also setting new industry standards for innovation.”
Samer Abu-Ltaif, Microsoft Corporate Vice President and President, Central and Eastern Europe, Middle East and Africa, said: “Our investment in G42 stands as a testament to the thriving and dynamic tech landscape in the UAE and the broader region.”
He added: “With G42, we will introduce cutting-edge technologies that will empower countries and markets to advance their digital agendas by harnessing the power of Cloud and AI.”
The collaboration between G42 and Microsoft has hit several milestones over the past year. This included a joint plan announced in April 2023 to develop AI solutions tailored for the public sector and industry. Previously, the companies agreed to introduce sovereign cloud offerings and collaborate on unlocking the potential of advanced AI capabilities on the Azure public cloud platform. Fially, last November, Microsoft announced the availability of G42’s Jais Arabic Large Language Model on the new Azure AI Cloud Model-as-a-Service offering.
