Microsoft is putting $1.5 billion into a tech company located in the United Arab Emirates, which is led by the country’s national security adviser.
The deal between Microsoft and the UAE-based technology holding company G42 was announced on Tuesday. As part of the deal, Brad Smith, the president of Microsoft, will become a member of G42’s board of directors.
Microsoft stated that the agreement was made in consultation with both the UAE and U.S. governments.
G42, headquartered in Abu Dhabi, operates data centers in various locations and has been focusing more on artificial intelligence (AI) technologies. It has developed a leading Arabic-language AI model called Jais.
Under the deal, G42 will use Microsoft’s cloud computing platform for its AI applications and services. Additionally, the two companies will collaborate to bring digital infrastructure to countries where G42 operates, including in the Middle East, Central Asia, and Africa.
Previously, G42 announced plans to sever ties with Chinese hardware suppliers due to concerns raised by the U.S. government about its relationship with the Chinese government.
The company has faced allegations of spying due to its association with a mobile app suspected of being spyware. There have also been claims that it may have collected genetic material from Americans without their knowledge for the Chinese government.
Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser, serves as the chairman of G42’s board.
The U.S. Commerce Department praised the UAE as a key player in advanced technology and stated that it is collaborating with the UAE and other nations to ensure the responsible development and deployment of such technologies.
In a statement, spokesperson Brittany Caplin emphasized that investments like the one announced could foster innovation in digital technologies worldwide when managed responsibly.
