Software giant Microsoft Corp. is set to invest $1.5 billion in the United Arab Emirates’ leading artificial intelligence firm, G42. This decision comes after G42, an Abu Dhabi-based company, struck a unique agreement with the US government to terminate any ties with China.
The deal is a product of extensive behind-the-scenes negotiations between the US government and the Middle Eastern firm. As part of the dialogue, G42 agreed to divest from China and switch to American technology. Previously, the UAE’s AI pioneer had faced scrutiny due to alleged connections to blacklisted Chinese businesses and their government.
Microsoft’s hefty investment aligns a crucial Middle Eastern firm with the US. G42, at the forefront of the UAE’s drive to artificial intelligence, will now use Microsoft’s Azure cloud services. This strategic move highlights UAE’s balancing act between its partnerships with the West and China, a key player in the region.
More details about the agreement can be found here.