Microsoft has announced a $1.5 billion investment in Abu Dhabi-based AI firm G42 in an effort to bring advanced AI solutions and cloud capabilities to organisations globally.
The two companies will work together to provide AI applications and services running on Microsoft Azure to public and private sector clients.
The collaboration looks to make AI more accessible to developing countries in the Middle East, Central Asia, and Africa.
“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,” said Chairman of G42, Sheikh Tahnoon bin Zayed Al Nahyan.
To support building an AI talent pool, the partnership also includes a $1 billion development fund for AI developers. As part of the deal, Microsoft’s Vice Chair and President Brad Smith will join the G42 Board of Directors.
“Our two companies will work together not only in the UAE, but to bring AI and digital infrastructure and services to underserved nations,” said 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,” he added.
To ensure the ethical and secure development of AI technology, Microsoft and G42 have backed their commercial partnership with unprecedented government agreements. For the first time, an Intergovernmental Assurance Agreement (IGAA) between the two companies lays out commitments to follow best practices for trustworthy AI.
Developed in close consultation with the UAE and US governments, the IGAA obliges Microsoft and G42 to elevate security standards and comply with relevant national and international laws. By working closely together under the governance of this detailed IGAA, the companies aim to set a new standard for responsible AI partnerships between the private sector and governments.
The agreement includes assurances from both governments on security and ethics standards.
“Through Microsoft’s strategic investment, we are advancing our mission to deliver cutting-edge AI technologies at scale,” said Peng Xiao, Group Chief Executive Officer of G42.
“This partnership significantly enhances our international market presence, combining G42’s unique AI capabilities with Microsoft’s robust global infrastructure. Together, we are not only expanding our operational horizons but also setting new industry standards for innovation,” the CEO added.
“Our investment in G42 stands as a testament to the thriving and dynamic tech landscape in the UAE and the broader region. This strategic partnership is well-positioned to ignite opportunities for our customers and partners, accelerate innovation, and fuel economic growth,” added Samer Abu-Ltaif, Microsoft Corporate Vice President and President, Central and Eastern Europe, Middle East, and Africa.
“With G42, we will introduce cutting-edge technologies that will empower countries and markets to advance their digital agendas by harnessing the power of Cloud and AI.”
The partnership between G42 and Microsoft has rapidly grown over the past year. In April 2023, the companies unveiled a joint initiative to build customised AI solutions for government and business using Microsoft’s cloud platform and partner network. By September, they reached a deal to launch sovereign cloud services and jointly explore advanced AI on Azure.
Most recently, this Winter Microsoft enabled access to G42’s Arabic language model on its new AI model hosting service. Within a year, the strategic alliance has already yielded major co-development of cloud and AI offerings.
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