In a surprising announcement today, Microsoft has revealed a strategic investment of $1.5 billion in G42, UAE-based AI technology holding company. The partnership announcement also disclosed that Brad Smith, Vice Chair and President of Microsoft, will now serve on the G42 Board of Directors.

The investment aims to fortify the partnership between G42 and Microsoft, with a particular focus on expanding AI technologies and skilling initiatives not only in the UAE but also across the globe. Under this collaboration, G42 will run its AI applications and services on Microsoft Azure, facilitating the delivery of advanced AI solutions to global public sector clients and large enterprises. 

“Microsoft’s investment in G42 marks a pivotal moment in our company’s journey of growth and innovation, signifying a strategic alignment of vision and execution between the two organizations. This partnership is a testament to the shared values and aspirations for progress, fostering greater cooperation and synergy globally,” said H.H. Sheikh Tahnoon bin Zayed Al Nahyan, chairman of G42.  

Beyond Borders

The collaboration between G42 and Microsoft extends beyond technology deployment, and the partners are committed to bringing advanced AI and digital infrastructure to countries in the Middle East, Central Asia, and Africa. 

“Our two companies will work together not only in the UAE, but to bring AI and digital infrastructure and services to underserved nations. We will combine world-class technology with world-leading standards for safe, trusted, and responsible AI, in close coordination with the governments of both the UAE and the United States,” said Smith. 

Further, the partnership will also support and promote the development of skilled and diverse AI workforce and talent pool. The investment of $1 billion into a development fund specifically for developers underscores the commitment to fostering talent in AI-related fields.

G42 Partnering with the Tech Giants

Last year, G42 announced their strategic partnership with OpenAI, where the company spoke about leveraging OpenAI’s generative AI models for UAE’s financial services, energy, healthcare and many other sectors. 

G42 Group CEO Peng Xiao and OpenAI CEO and co-founder Sam Altman. Source: G42

Interestingly, MGX, an AI-focused investment company in Abu Dhabi, was in talks to invest in OpenAI’s chip venture. MGX is also led by G42’s Sheikh Tahnoon. 

G42 had also partnered with IBM through its G42 Cloud subsidiary, and recently, the Jais-13b- chat foundation model is available on IBM WatsonX. The Jais Arabic LLM is made by Core42, which is owned by G42.