Microsoft Announces $1.5B In G42

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Microsoft has revealed a substantial $1.5 billion investment in G42, an esteemed Abu Dhabi-based AI technology holding firm. The agreement highlights efforts to provide enterprises throughout the world with cutting-edge AI technologies and cloud capabilities. The two businesses will collaborate to provide clients in the public and private sectors with AI apps and services that are hosted on Microsoft Azure. Amid the global struggle for tech supremacy, it also grants the American behemoth a minority interest and a board seat, enabling the two to strengthen their relationship. Deputy Ruler of Abu Dhabi and G42 Chairman Sheikh Tahnoun bin Zayed Al Nahyan was there when G42’s relationship with Microsoft was announced.

Microsoft’s significant $1.5 bn investment in G42 for AI adoption

The partnership aims to increase Middle Eastern, Central Asian, and African developing nations’ access to AI. The agreement also includes a $1 billion development fund (AED 3.67 billion) to support the creation of an AI talent pool and foster the growth of competent and skilled AI developers to boost innovation and competitiveness for the UAE and the surrounding area. Brad Smith, President and Vice Chair of Microsoft, will join the G42 Board of Directors as part of this expanded cooperation. The increased cooperation will enable businesses of all sizes in hitherto untapped markets to make use of cloud computing and artificial intelligence (AI) while guaranteeing that the technology they use complies with cutting-edge safety and security requirements. Businesses of all sizes would be able to benefit from cloud computing and artificial intelligence while ensuring that the technology they employ conforms with the strictest safety and security regulations worldwide thanks to enhanced cooperation.

Adhering to AI best practices with IGAA

Microsoft and G42 have secured unprecedented government agreements to support their business relationship and guarantee the ethical and secure development of AI technologies. The two companies have signed the Intergovernmental Assurance Agreement (IGAA), which for the first time lays out pledges to adhere to best practices for reliable AI. The IGAA requires Microsoft and G42 to improve security standards and abide by pertinent national and international laws. It was created in close consultation with the governments of the United Arab Emirates and the United States. Through close collaboration under the auspices of this comprehensive IGAA, the companies hope to establish a new benchmark for ethical AI collaborations across the public and private sectors. Both governments have pledged to uphold ethics and security requirements under the pact.

Significant milestones

Over the previous year, G42 and Microsoft have achieved several significant milestones that have increased their relationship. This includes a cooperative strategy unveiled in April 2023 to create AI solutions customized for business and government using Microsoft’s vast network of partners and cloud computing power. The firms signed a contract in September 2023 to launch sovereign cloud services and work together to maximize the potential of advanced artificial intelligence features on the Azure public cloud platform. Finally, Microsoft revealed in November 2023 that the Jais Arabic Large Language Model from G42 is now available on the brand-new Azure AI Cloud Model-as-a-Service.

Microsoft most recently made the Arabic language model from G42 available on its new AI model hosting service this winter. The strategic partnership has already produced significant co-development of cloud and AI products in less than a year.

Here’s what they said

Chairman of G42, Sheikh Tahnoon bin Zayed Al Nahyan commented,

“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.”

Brad Smith, Microsoft Vice Chair and President said,

“Our two companies will work together not only in the UAE, but to bring AI and digital infrastructure and services to underserved nations. 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.”

Peng Xiao, Group Chief Executive Officer of G42 added,

“Through Microsoft’s strategic investment, we are advancing our mission to deliver cutting-edge AI technologies at scale. 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.

Samer Abu-Ltaif, Microsoft Corporate Vice President and President, Central and Eastern Europe, Middle East, and Africa stated,

“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. 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.”

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