G42, the leading UAE-based artificial intelligence (AI) technology holding company, announced a USD 1.5 billion strategic investment by Microsoft. This strategic investment will enhance the UAE's position as a global AI hub and provide further opportunities for partners and customers to innovate and grow. Moreover, this partnership includes a first-of-its-kind Intergovernmental Assurance Agreement (IAA) as both parties commit to world-leading standards in AI safety and security.
H.H. Sheikh Tahnoun 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."
AI Workforce Development
The investment will strengthen the two companies' collaboration on bringing the latest Microsoft AI technologies and skilling initiatives to the UAE and other countries around the world. Following the investment of USD 1 billion in a development fund for developers, the partnership will support the development of a skilled and diverse AI workforce and talent pool that will drive innovation and competitiveness for the UAE and broader region.
Advanced AI and Digital Infrastructure
G42 will also run its AI applications and services on Microsoft Azure and partner to deliver advanced AI solutions to global public sector clients and large enterprises. Moreover, G42 and Microsoft will also work together to bring advanced AI and digital infrastructure to countries in the Middle East, Central Asia, and Africa, providing these nations with equitable access to services to address important governmental and business concerns while ensuring the highest standards of security and privacy.
"Our two companies will work together not only in the UAE, but to bring AI and digital infrastructure and services to underserved nations," highlighted Brad Smith, Microsoft Vice Chair and President. "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."
A Joint International Infrastructure
The commercial partnership is supported by a unique agreement that provides assurances to both the UAE and US governments. This agreement aims to implement top-notch best practices to guarantee the secure, trusted, and responsible development and use of AI.
Governed by a detailed Intergovernmental Assurance Agreement (IGAA), both companies will work closely and elevate the security and compliance framework of their joint international infrastructure. Furthermore, they are committed to complying with US and international trade, security, responsible AI, and business integrity laws and regulations.
Setting New Standards of Innovation
Peng Xiao, Group Chief Executive Officer of G42, noted that this partnership significantly enhances their international market presence by “combining G42's unique AI capabilities with Microsoft's robust global infrastructure.” Together, they are not only expanding operational horizons but also “setting new industry standards for innovation."
Since 2023, the collaboration between G42 and Microsoft has expanded, surpassing several milestones. This includes a joint plan announced in April 2023 to develop AI solutions tailored for the public sector and industry. Additionally, in September 2023, the companies entered into an agreement to introduce sovereign cloud offerings and collaborate on unlocking the potential of advanced AI capabilities on the Azure public cloud platform. In November 2023, Microsoft announced the availability of G42's Jais Arabic Large Language Model on the new Azure AI Cloud Model-as-a-Service offering.
Samer Abu-Ltaif, Microsoft Corporate Vice President and President, Central and Eastern Europe, Middle East and Africa, added, "Our investment in G42 stands as a testament to the thriving and dynamic tech landscape in the UAE and the broader region. This strategic partnership is well-positioned to ignite opportunities for our customers and partners, accelerate innovation, and fuel economic growth. With G42, we will introduce cutting-edge technologies that will empower countries and markets to advance their digital agendas by harnessing the power of Cloud and AI."