Microsoft is set to inject $1.5 billion into Abu Dhabi’s G42, an artificial intelligence organization that has been scrutinized for its connections to China.
The collaboration between the two companies will focus on AI and digital infrastructure, marking Microsoft’s first expansion of its AI presence into the Middle East.
This move may come under significant scrutiny from regulatory bodies.
G42, under the leadership of Peng Xiao, a Chinese entrepreneur and former CEO of Pegasus, a cybersecurity firm, has faced inquiries regarding its ties to Beijing.
Reports from November, notably by The New York Times, raised concerns among US officials about the potential for G42 to facilitate the sharing of American technology and data with the Chinese government. Xiao refuted these allegations, dismissing them as “misinformation” in a January interview with CNN.
Both G42 and Microsoft have pledged to adhere to US and international trade regulations as part of their partnership.
Brad Smith, President of Microsoft, will join the board of G42 as part of the agreement. He emphasized that the collaboration between the two companies aims not only to benefit the UAE but also to extend AI and digital services to underserved nations.
Last year, G42 introduced an Arabic-language AI model called “Jais,” which operates on Microsoft’s Azure platform.
Microsoft has established notable partnerships with various AI companies, positioning itself as a leader in the field. While its collaboration with OpenAI has been a significant driver of growth, it has also drawn attention from regulators in the United States and Europe concerned about Microsoft’s increasing dominance.
In recent months, Microsoft has made significant AI investments abroad. In February, it unveiled a collaboration with Mistral, the foremost AI startup in France. During the same period, it committed substantial funding for AI initiatives in Spain and Germany.
Smith emphasized to CNN in February that these moves signify the dawn of a new AI era, heralding the birth of a distinct sector in the economy.
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