Microsoft invests $1.5bn in UAE’s G42 to power AI adoption

Microsoft has announced a $1.5bn strategic investment in G42, the leading UAE-based artificial intelligence (AI) technology holding company.

This significant investment bolsters the existing partnership between the two entities and will drive the latest AI technologies and skilling initiatives in the UAE and beyond.

The investment will see both G42 and Microsoft advance AI adoption globally while adhering to rigorous standards of safety and security.

Additionally, the partnership aims to extend advanced AI and digital infrastructure to countries across the Middle East, Central Asia, and Africa, ensuring equitable access to services while upholding the highest standards of security and privacy.

Under this expanded collaboration, G42 will leverage Microsoft Azure as its preferred cloud platform, enabling the delivery of advanced AI solutions to global public sector clients and large enterprises.

Brad Smith, vice chair and president of Microsoft, who will join the G42 Board of Directors, said: “Our two companies will work together not only in the UAE, but to bring AI and digital infrastructure and services to underserved nations.”

Microsoft and G42: A shared vision for progress

Sheikh Tahnoon bin Zayed Al Nahyan, chairman of G42, hailed the investment as a pivotal moment in the company’s journey, emphasising the shared values and aspirations driving greater cooperation and synergy globally.

“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 organisations,”  he said.

The partnership also underscores the joint goal of developing a skilled and diverse AI workforce through a $1bn investment in a development fund for developers. This initiative aims to drive innovation and competitiveness in the UAE and the broader region.

Peng Xiao, group CEO of G42, highlighted the significance of Microsoft’s strategic investment in advancing the mission to deliver cutting-edge AI technologies at scale.

“Together, we are not only expanding our operational horizons but also setting new industry standards for innovation,” he said.

Samer Abu-Ltaif, Microsoft corporate VP and president, Central and Eastern Europe, Middle East and Africa, echoed the sentiment, emphasising the strategic partnership’s potential to ignite opportunities, accelerate innovation, and fuel economic growth in the region.

Responsible AI

The commercial partnership is focused on the secure, trusted, and responsible development and deployment of AI.

Both companies have entered into a detailed Intergovernmental Assurance Agreement (IGAA) – a first-of-its-kind – developed in consultation with the UAE and US governments, to ensure compliance with international laws and regulations.

Collaboration highlights

The collaboration between the companies has seen significant milestones over the past year, including joint initiatives to develop AI solutions tailored for the public sector and industry, the introduction of sovereign cloud offerings, and the availability of G42’s Jais Arabic Large Language Model on Microsoft’s Azure AI Cloud Model-as-a-Service offering.