Michelle ThompsonMicrosoft is set to invest $1.5 billion in Abu Dhabi’s G42, an artificial intelligence group with previous scrutiny over its connections to China. This partnership will focus on AI and digital infrastructure, marking Microsoft’s entry into the Middle Eastern AI landscape.
The collaboration could draw significant attention from regulators. G42, led by Peng Xiao, has faced allegations of ties to Beijing, raising concerns about potential sharing of American technology and data with the Chinese government. However, both G42 and Microsoft have affirmed their commitment to adhering to US and international trade regulations.
As part of the deal, Microsoft President Brad Smith will join the G42 board, emphasizing plans to extend AI and digital services to underserved nations.
G42 previously introduced an Arabic-language AI model named “Jais” on Microsoft’s Azure platform. Microsoft has been actively partnering with various AI companies to solidify its position in the AI sector. Its collaboration with OpenAI has notably contributed to its recent growth, although it has drawn regulatory scrutiny in the US and Europe for potential dominance concerns.
In addition to the Middle East venture, Microsoft has made significant AI investments worldwide, including partnerships with Mistral, a leading French AI startup, and substantial funding commitments for AI projects in Spain and Germany. Microsoft sees these efforts as part of embracing the new AI era and shaping the future economy.
