Microsoft invests $1.5B in global AI development

Microsoft has announced that they are investing $1.5B into G42, an AI company based in the United Arab Emirates which will give it a minority share in the company, with Microsoft's Vice Chair and President, Brad Smith, joining the board of directors.

What does Microsoft’s investment in G42 mean? 

G42 will migrate its AI applications, data platform, and other essential technology and infrastructure to Microsoft Azure and will collaborate with Microsoft to co-innovate and deliver advanced AI solutions, skilled workforces, and digital infrastructure to multiple markets and industries in the UAE and other countries around the world–including Central Asia and Africa–to make AI accessible and beneficial to a wider, global audience.

As part of the partnership, both companies have committed to setting up a dedicated, $1B developer fund to cultivate and foster skilled and diverse AI workforces across the UAE and other regions, leading to increased innovation and competition.  

Both Microsoft and G42 have given US and UAE governments reassurance, through a first-of-its-kind binding agreement to comply with U.S. and international trade, security, responsible AI, and business integrity laws and regulations and apply best practices to ensure the secure, trusted, and responsible development and deployment of AI.

While Microsoft has invested over $11B to develop AI in Japan, Germany, Spain, and the UK, this is its first commercial investment in a company.

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