According to Odaily Planet Daily, as part of a broader strategic plan, Microsoft invested $1.5 billion in the UAE artificial intelligence company G42. The deal provides Microsoft with access to large amounts of data, a strong capital market and a more relaxed regulatory environment.
Microsoft established its first cloud data center in the UAE in 2019. As part of the recent deal, G42 will use Microsoft's cloud computing platform Azure as the backbone for developing and deploying the AI services it provides to all its customers.
In addition, Microsoft and G42 also plan to build data centers in other countries, including East African countries. OpenAI CEO Sam Altman has also visited the UAE many times, hoping to establish a global artificial intelligence alliance, and said the region can become a "regulatory sandbox" for global artificial intelligence testing.
Industry observers believe that Microsoft and OpenAI's strong interest in the UAE is part of an effort to consolidate its AI leadership and expand its global footprint. Romanoff said the investment is more about attracting customers on its Azure infrastructure and strengthening Microsoft's early leadership in all areas of AI by expanding the use of OpenAI.
Earlier in April, Microsoft announced a strategic investment of $1.5 billion in artificial intelligence company G42. This investment will strengthen the cooperation between the two companies and bring Microsoft's artificial intelligence technology and skills program to the UAE and other countries in the world. The two companies will support the creation of a $1 billion developer development fund to promote innovation and competitiveness in the UAE and other regions. In addition, Microsoft Vice Chairman and President Brad Smith will join the G42 board of directors.