(Reuters) – Microsoft (NASDAQ:) will invest $1.5 billion in United Arab Emirates-based artificial intelligence company G42, giving the U.S. tech giant a minority stake and a seat on the board of directors, the companies said in a statement on Tuesday.
As part of the partnership, G42 will run its AI applications and services on the Microsoft Azure cloud computing platform to provide cutting-edge AI solutions to global public sector clients and large enterprises.
Microsoft President Brad Smith, who will take a seat on the G42 board, said: “We will combine world-class technology with world-leading standards for safe, secure and responsible artificial intelligence, in close coordination with the UAE and US governments.” States.”
The firms will work together to bring advanced artificial intelligence and digital infrastructure to countries in the Middle East, Central Asia and Africa.
The partnership comes as Washington attempts to thwart Beijing’s technological progress, with the US adding four Chinese companies to an export blacklist for seeking to purchase artificial intelligence chips for the Chinese military.
G42 has abandoned its investments in China and embarked on a lengthy effort to withdraw Chinese equipment amid U.S. concerns about its relationship with Chinese businesses.
Microsoft and G42 will support the creation of a $1 billion fund for developers to boost artificial intelligence skills in the UAE and wider region.
The New York Times, which first reported the partnership, said the deal includes a number of protections for artificial intelligence products shared by G42, including an agreement to exclude Chinese equipment from the Emirati firm’s operations. G42 will stop using Huawei telecommunications equipment, which the US fears could become a backdoor for Chinese intelligence agencies, the newspaper reported.
G42 and Azure have collaborated on multiple occasions over the past year, with G42 saying it will use Microsoft Azure data centers as part of its AI infrastructure to drive regional adoption.