Microsoft invests $1.5 billion in Emirati AI company G42

Microsoft invests $1.5 billion in Emirati AI company G42

Microsoft plans to invest a massive $1.5 billion in Emirati AI company G42. Through this investment, the US tech giant aims to further expand its leading position in the AI ​​industry. A key focus is also on the U.S. government's safeguards in relation to this transaction.

The New York Times recently reported on this billion-dollar deal, in which Microsoft intends to deepen its existing collaboration with G42. G42 is an artificial intelligence company in the United Arab Emirates and has a history of ties with China. To allay U.S. concerns about these ties, G42 sold its stakes in Chinese companies such as ByteDance earlier this year.

The background to this transaction is the arms race between the United States and China for technological influence in the Gulf. Both the governments of both countries and the companies involved have an interest in bringing artificial intelligence, digital infrastructure and services to underserved countries. Microsoft President Brad Smith emphasized the goal of establishing innovative technologies in regions such as Africa and Central Asia, where US technology companies have previously had little presence.

As part of the partnership, G42 will be allowed to use Microsoft's cloud services and join a security agreement previously negotiated with the US government. An important part of this agreement is that G42 will remove Chinese equipment from its operations. Microsoft President Smith will also take a seat on the G42 board and the US government has shown a strong interest in protecting the intellectual property behind AI programs.

Microsoft's investment aims to counter China's growing influence in the Gulf region and strengthen its position in the emerging AI industry. On the stock exchange, Microsoft shares rose 0.23 percent to $414.58 in NASDAQ trading.