Microsoft Commits $1.5 Billion to UAE’s AI Sector

Microsoft announced a $1.5 billion investment in G42, an AI development group based in Abu Dhabi.

The corporation will acquire a minority stake in the Arab holding, with Microsoft’s Vice Chair and President Brad Smith joining the board of directors.

.@Microsoft‘s investment in @G42ai will enhance the UAE’s position as a leading #AI hub and provide digital infrastructure and services to help underserved nations innovate and grow. We will combine world-class technology with world-leading standards for safe, trusted, and…

— Brad Smith (@BradSmi) April 16, 2024

“Given the importance of AI technology and the interest in it, we have taken the first step in close cooperation with the governments of the UAE and the USA,” said Smith.

In the future, the parties plan to establish partnerships to build data centers in other countries. They will also support a $1 billion fund for neural network developers.

According to G42 CEO Peng Xiao, the company uses Microsoft’s Azure cloud computing platform as the foundation for developing and deploying AI services.

The partnership was announced after the holding severed ties with Chinese equipment suppliers.

Companies within G42 operate in various fields, from data center deployment to healthcare. Recently, the holding established the AI-focused investment fund MGX.

OpenAI CEO Sam Altman discussed with its representatives a scheme to increase chip production.

Back in March, media reported on plans by Microsoft and OpenAI to create a data center costing at least $100 billion.