In a move that significantly bolsters the UAE’s burgeoning AI ecosystem, Microsoft announced a $1.5 billion investment in G42, Abu Dhabi’s AI and cloud company. 

The investment will strengthen the two companies’ collaboration on bringing the latest Microsoft AI technologies and skilling initiatives to the UAE and other countries worldwide. 

As part of this expanded partnership, Brad Smith, Vice Chair and President of Microsoft, will join the G42 Board of Directors.

This expanded collaboration will empower organizations in new markets to harness the benefits of AI and the cloud while ensuring they adopt AI that adheres to world-leading standards in safety and security.

H.H. Sheikh Tahnoon bin Zayed Al Nahyan, Chairman of G42, said: “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.”

The partnership will also support the development of a skilled and diverse AI workforce and talent pool in the UAE and broader region by investing $1 billion in a development fund for developers.

Furthermore, the focus will be on expanding access to AI infrastructure and capabilities for underserved nations and providing equitable access to AI and digital infrastructure for countries in the Middle East, Central Asia, and Africa. 

G42’s AI applications and services will be hosted on Microsoft Azure, further strengthening its ability to deliver advanced solutions for public sector clients and large enterprises worldwide.  

Security remains a top priority. This commitment is underlined by a detailed Intergovernmental Assurance Agreement (IGAA) established by G42 and Microsoft, developed in close collaboration with the UAE and US governments.

The UAE has been actively seeking partnerships with tech giants to accelerate its AI ambitions. This move follows recent reports of the UAE government exploring a potential multi-trillion-dollar investment in OpenAI to bolster global AI chip production.

Meanwhile, G42 has emerged as a key player in the UAE’s AI strategy. It recently established Core42, a consolidated entity focusing on national-scale AI solutions delivery, and partnered with OpenAI to advance the field.  

This latest collaboration with Microsoft builds upon a successful track record of collaboration, with previous projects focusing on public and industrial sector AI solutions, sovereign cloud offerings, and the integration of G42’s Jais Arabic language model within the Microsoft Azure platform.

Jais model represents a significant step towards integrating the Arabic language into mainstream AI development.