US multinational Microsoft has decided to take a step forward and will invest $1.5 billion in G42 AI in the UAE. This decision was made based on several studies that show that G42 is one of the artificial intelligences that will have the greatest impact on the national economy.
On the Emirati side, this investment has been warmly welcomed. This is due to the G42’s key role in the UAE’s smart cities programme, which is also in line with the national strategy’s goal of attracting as much investment as possible.
Part of the investment deal in UAE artificial intelligence company G42 includes a minority shareholder and board member, allowing the companies to strengthen their relationship in the global battle for technological supremacy. Become. As part of this expanded partnership, Microsoft Vice President and President Brad Smith will join G42’s Board of Directors.
In two public statements, Microsoft and G42 described their engagement with the governments of Washington and Abu Dhabi as a first-of-its-kind agreement to ensure the safe, reliable, and responsible development and deployment of artificial intelligence. did.
G42 is leading the way in accelerating the adoption of artificial intelligence technology in the UAE, with its initiatives ranging from cloud computing to self-driving cars. Last year, the firm launched the $10 billion 42X Fund to invest in emerging market technology companies.
The new partnership comes amid US efforts to limit China’s technological advances, with the US blacklisting four Chinese companies seeking to provide artificial intelligence chips to China’s military. The United States is similarly concerned about China’s growing economic ties with Gulf states, including the United Arab Emirates.
In light of U.S. government concerns about the G42’s relationship with Chinese companies, the company in February suspended investments and sold Chinese-made equipment in the world’s second-largest economy, while limiting cooperation with U.S. companies. Long-term negotiations have begun.
An implicit part of the U.S. investment agreement is a halt to the Emirati company’s acquisition of Huawei. The supply of communications equipment has been restricted due to US speculation that China is secretly providing intelligence equipment to the Chinese military.
G42 Chairman Sheikh Tahnoun bin Zayed Al Nahyan said: “Microsoft’s investment in G42 is a key moment in our growth and transformation journey and demonstrates the strategic alignment of vision and execution between both organizations. This partnership will unlock greater collaboration and synergy. It is a testament to our shared values and ambition to promote progress ‘on a global scale’.
One of the common goals of this investment is to work together to build advanced infrastructure IA in countries in the Gulf, Middle East, Central Asia, and Africa.
The two companies have previously collaborated, and the data transfer and implementation of G42 on Microsoft’s cloud will facilitate the expansion of new projects across the Gulf region.
Almost 70% of fast-growing companies in the Gulf countries plan to implement the technology this year to improve their decision-making processes, according to a survey conducted by US companies. Meanwhile, 45% of low-growth companies plan to use AI for similar purposes, higher than the global average of 31%.
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