Microsoft Invests USD 1.5bn in Abu Dhabi’s G42 to Propel AI Development

By Velizar Velikov, Head of M&A Database at EMIS

Microsoft Corp announced a USD 1.5bn investment in Abu Dhabi-based AI technology company G42, aiming to bolster the UAE’s position as a global AI hub and drive innovation and growth for partners and customers worldwide. 

The investment will expand Microsoft and G42’s existing relationship, enabling organizations of all sizes in new markets to leverage AI and cloud benefits while ensuring adherence to world-leading safety and security standards.

G42 will utilize Microsoft Azure for its AI applications, providing sophisticated AI solutions to global public sector clients and large enterprises. The alliance aims to bring equitable access to AI and digital infrastructure to the Middle East, Central Asia, and Africa, addressing critical governmental and business challenges while maintaining high standards of security and privacy.

In addition to the investment, both companies will support the establishment of a USD 1bn development fund for AI developers to drive innovation and competitiveness for the UAE and broader region.

They have also introduced an Intergovernmental Assurance Agreement, committing to world-leading standards in AI safety and security, in close coordination with the governments of the UAE and the U.S. The agreement ensures the secure and responsible development and deployment of AI technologies.

G42, based in Abu Dhabi, is a global leader in AI, leveraging artificial intelligence for good across various industries, from molecular biology to space exploration. Dedicated to realizing exponential possibilities and driving innovation for a better tomorrow, the company employs 20,000 people and has published over 300 research papers in the last three years. G42 also boasts a robust data center network through its joint venture with telecom e& (Khazna Data Centers).

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