REDMOND, Wash. (AP) — Microsoft is investing $1.5 billion in a technology company based in the United Arab Emirates and overseen by the country’s powerful national security adviser.
Microsoft and technology holding company G42 announced the partnership on Tuesday. As part of the agreement, Microsoft President Brad Smith will join G42’s board of directors.
The agreement was “developed in close consultation with both the UAE and U.S. governments,” Microsoft said.
Abu Dhabi-based G42 operates data centers in the Middle East and elsewhere, and is increasingly identifying itself as an AI company. The company has built what it considers to be the world’s leading Arabic AI model, known as Jais.
Microsoft said G42 will run its AI applications and services on the US tech giant’s cloud computing platform, and the two companies will deploy digital infrastructure in countries where G42 has an established presence in the Middle East, Central Asia and Africa. He said he would work on it.
The G-42 had previously said it would cut ties with Chinese hardware suppliers, citing concerns that the United States was getting too close to Beijing.
The company faces espionage charges related to a mobile phone app identified as spyware. It also faces allegations that it may have secretly collected genetic material from Americans for the Chinese government.
Sheikh Tahnoun bin Zayed Al Nahyan, UAE National Security Adviser, is the chairman of the company’s board of directors.
The U.S. Department of Commerce on Tuesday described the UAE as a “global player in cutting-edge technology” and said it is working with the UAE and other countries toward “verifiable commitments” for the safe development and deployment of such technology. He said he is doing so.
“Investments like the one announced today, if managed responsibly, have the potential to further advance digital technology innovation around the world,” spokeswoman Brittany Caplin said in a written statement.
