Microsoft invests $1.5 billion in AI firm G42, overseen by UAE's national security adviser

The Microsoft logo is pictured outside the headquarters in Paris, on Jan. 8, 2021. Microsoft will stop packaging its Teams videoconferencing app with its Office software after the practice attracted antitrust scrutiny. The tech giant said Monday, April 1, 2024, that customers buying Office subscriptions starting this week won't get Teams bundled with the service. Microsoft will start selling the two products separately around the world, following a move last year to separate the products in Europe. (AP Photo/Thibault Camus, File)

REDMOND, Wash. (AP) — Microsoft is investing $1.5 billion in a technology firm based in the United Arab Emirates and overseen by the country’s powerful national security adviser.

Microsoft and the technology holding company G42 announced the deal Tuesday. As part of the agreement, Microsoft's president, Brad Smith, will join G42's board of directors.

The deal “was developed in close consultation with both the UAE and U.S. governments,” Microsoft said.

Based in Abu Dhabi, G42 runs data centers in the Middle East and elsewhere and has increasingly identified itself as an AI firm. It has built what's considered the world’s leading Arabic-language AI model, known as Jais.

Microsoft said G42 will run its AI applications and services on the U.S. tech giant's cloud computing platform, and the two companies will work to bring digital infrastructure to countries where G42 has established a presence in the Middle East, Central Asia and Africa.

G42 has previously said it would cut ties to Chinese hardware suppliers over American concerns it was too close to the Chinese government.

The company has faced spying allegations for its ties to a mobile phone app identified as spyware. It has also faced claims it could have gathered genetic material secretly from Americans for the Chinese government.

Sheikh Tahnoon bin Zayed Al Nahyan, the UAE's national security adviser, is chairman of the company’s board.

The U.S. Commerce Department on Tuesday described the UAE as a “global player in cutting edge technology” and said it is working with it and other countries toward “verifiable commitments” for the safe development and deployment of such technologies.

"When responsibly managed, investments like the one announced today have the potential to further innovation in digital technologies around the world,” spokesperson Brittany Caplin said in a written statement.

Where should you invest $1,000 right now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

Elon Musk's Next Move Cover

Wondering when you'll finally be able to invest in SpaceX, StarLink, or The Boring Company? Click the link below to learn when Elon Musk will let these companies finally IPO.

Get This Free Report

Featured Articles and Offers

Search Headlines: