Microsoft has invested $1.5 billion in Abu Dhabi-based synthetic intelligence (AI) agency G42.
The funding is the most recent in a sequence of collaborations for the corporate and marks the most recent instance of the United Arab Emirates’ (UAE) rising significance within the AI house.
“Constructing on the 2 organizations’ long-standing collaboration in AI and digital transformation initiatives, Microsoft’s funding deepens the reciprocal dedication to this strategic partnership,” the businesses mentioned in a Tuesday (April 16) information launch.
“G42 will run its AI purposes and providers on Microsoft Azure and companion to ship superior AI options to international public sector purchasers and enormous enterprises.”
The 2 companies can even collaborate to deliver superior AI and digital infrastructure to nations within the Center East, Central Asia and Africa, giving these international locations “equitable entry to providers to handle essential governmental and enterprise issues whereas making certain the very best requirements of safety and privateness,” the discharge mentioned.
The partnership can even see Microsoft President Brad Smith be part of the G42 board, with the 2 firms making a $1 billion fund for AI builders.
“Our two firms will work collectively not solely within the UAE, however to deliver AI and digital infrastructure and providers to underserved nations,” mentioned Smith. “We are going to mix world-class expertise with world-leading requirements for protected, trusted, and accountable AI, in shut coordination with the governments of each the UAE and america.”
Earlier this 12 months, OpenAI CEO Sam Altman mentioned the UAE may function a “regulatory sandbox” to experiment with AI and develop international guidelines for its use. He burdened the necessity to take a look at AI in a managed setting earlier than implementing rules.
A report by Bloomberg Information on the time mentioned the UAE’s ties to China have raised some alarms within the U.S. G42 has mentioned it will cut back its presence in China to handle these issues.
In the meantime, PYMNTS wrote final month about AI’s potential to reshape industries and drive financial growth within the Center East, pointing to a PwC examine that forecasts that by 2030, the area may seize 2% of AI’s complete international advantages, amounting to roughly $320 billion.
“Profitable AI growth efforts couldn’t solely result in a wave of native creativity and innovation resembling new startups, and attracting technology of scholars to the sphere, however may unfold the ensuing prosperity throughout the area, countering native disbalances and democratizing the information economic system to draw the brightest minds,” geopolitical analyst Irina Tsukerman advised PYMNTS in an interview.
