Technological giant Microsoft has revealed it will invest $1.5 billion in G42, the leading UAE-based artificial intelligence (AI) technology holding company.
The agreement will provide Microsoft with a minority stake in the company, as well as a seat in its Board of Directors, which will be occupied by Brad Smith, Vice Chair and President of Microsoft.
“The investment will strengthen the two companies’ collaboration on bringing the latest Microsoft AI technologies and skilling initiatives to the UAE and other countries,” the companies said in a press release.
Under the terms of the deal, G42 has agreed to run its AI applications and services on Microsoft’s cloud computing platform Azure to deliver advanced AI solutions to global public sector clients and large enterprises.
G42 and Microsoft will also work together to bring advanced AI and digital infrastructure to countries in the Middle East, Central Asia, and Africa.
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 organisations. This partnership is a testament to the shared values and aspirations for progress, fostering greater cooperation and synergy globally.”
The partnership will also support the development of a skilled and diverse AI workforce and talent pool that will drive innovation and competitiveness for the UAE and broader region with the investment of $1B in a development fund for developers.
“Our two companies will work together not only in the UAE, but to bring AI and digital infrastructure and services to underserved nations,” added Brad Smith, Microsoft Vice Chair and President. “We will combine world-class technology with world-leading standards for safe, trusted, and responsible AI, in close coordination with the governments of both the UAE and the United States.”
Earlier this year, G42 partnered with Abu Dhabi’s Artificial Intelligence and Advanced Technology Council (AIATC) and Mubadala to launch an AI-focused investment company, named MGX.
