Microsoft Invests $1.5 Billion in G42 in Abu Dhabi to Accelerate Artificial Intelligence Development and Global Expansion

G42, the UAE-based technology holding company specializing in artificial intelligence, and Microsoft have announced a strategic investment of $1.5 billion by Microsoft in G42.

This investment aims to enhance collaboration between the two companies to introduce Microsoft’s latest AI technologies and skills development initiatives to the UAE and other global markets.

As part of this expanded partnership, Brad Smith, President of Microsoft, will join the G42 Board of Directors. This collaboration will enable enterprises of all sizes in new markets to harness the benefits of artificial intelligence and cloud technologies while emphasizing their commitment to leading global standards for safety and security.

Building on their long-term cooperation in the fields of artificial intelligence and digital transformation, Microsoft’s investment deepens the mutual commitment to this strategic partnership.

G42 will utilize the Microsoft Azure platform to power AI applications and services, collaborating with Microsoft to deliver advanced AI solutions to global public sector clients and large enterprises.

Additionally, G42 and Microsoft will work together to bring advanced digital infrastructure and artificial intelligence to the Middle East, Central Asia, and Africa, providing these countries with fair access to services to address key governmental and commercial issues while maintaining the highest standards of security and privacy.

Reactions to the Investment

Sheikh Tahnoon bin Zayed Al Nahyan, Chairman of the G42 Board of Directors, stated, “Microsoft’s investment in G42 marks a pivotal moment in our company’s journey towards growth and innovation, demonstrating strategic alignment in vision and execution between the two institutions. This partnership embodies our shared values and aspirations for progress, enhancing global collaboration and synergy.”

Moreover, this partnership will contribute to the development of a skilled and diverse workforce in the field of artificial intelligence, fostering a talent pool that enhances innovation and competitiveness for the UAE and the region as a whole. This will be achieved through a $1 billion investment in a developer development fund.

Brad Smith, President of Microsoft, added, “Our collaboration will not only be limited to the UAE but will also work to deploy artificial intelligence, digital infrastructure, and services in developing countries. We will integrate advanced technology with leading global standards for secure, trusted, and responsible artificial intelligence, in close coordination with the governments of the UAE and the United States.”

Furthermore, this partnership will receive full support from both governments through an unprecedented agreement to ensure the development and deployment of artificial intelligence safely, securely, and responsibly.

Microsoft and G42 will work closely together to strengthen the security and compliance framework of their joint international infrastructure, committed to complying with trade, security, responsible artificial intelligence, and international commercial integrity laws and regulations.

The work in these areas will be governed by a detailed international government assurance agreement between G42 and Microsoft, developed following intensive consultations between the governments of the UAE and the United States.

In addition, Bing Xiao, CEO of G42 Group, stated, “Thanks to Microsoft’s strategic investment, we are delivering advanced artificial intelligence technologies on a wide scale. This partnership significantly enhances our international presence, combining G42’s unique artificial intelligence capabilities with Microsoft’s robust global infrastructure. We are not only expanding our operational horizons but also setting new standards for innovation in the sector.”

Samir Abu Latif, Vice President of Microsoft and its Head for Central and Eastern Europe, the Middle East, and Africa, added, “Our investment in G42 demonstrates the strength and vitality of the technological landscape in the UAE and the region as a whole. This strategic partnership is ideally positioned to create new opportunities for our customers and partners, accelerate the pace of innovation, and drive economic growth together. We will work with G42 to introduce leading technologies that enable countries and markets to enhance their digital agendas by leveraging the power of cloud computing and artificial intelligence.”

The collaboration between G42 and Microsoft has witnessed significant development over the past year, marked by several important milestones. These include the announcement in April 2023 of a joint plan to develop AI solutions tailored specifically for the public and industrial sectors, leveraging Microsoft’s extensive ecosystem of partners and cloud capabilities. In September 2023, the two companies signed an agreement to launch cloud offerings and collaborate on harnessing advanced AI capabilities on the Azure public cloud platform.

Finally, in November 2023, Microsoft announced the provision of the Jais model for the Arabic language, a significant step facilitated through the new Azure AI Cloud Model-as-a-Service. These milestones underscore the deepening partnership between G42 and Microsoft and their commitment to advancing artificial intelligence solutions on a global scale.

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