Microsoft plans to spend $1.5 billion on G42, an artificial intelligence company based in Abu Dhabi that has drawn criticism for its connections to China.
In a move that would see Microsoft’s AI empire spread into the Middle East for the first time, the businesses will work together on AI and digital infrastructure.
Authorities may scrutinize the action closely.
G42, which is headed by Chinese businessman Peng Xiao, a former CEO of the cybersecurity company Pegasus, has apparently come under scrutiny for its ties to Beijing.
US officials expressed worry in November to the New York Times that G42 might be used to transfer US technology and data to the Chinese government. In an interview with CNN in January, Xiao refuted the allegations, referring to them as “misinformation.”
As part of their collaboration, G42 and Microsoft claim to have pledged to abide by US and international trade laws.
As part of the agreement, Microsoft President Brad Smith will become a board member of G42. “Our two companies will collaborate to bring digital infrastructure and AI services to underserved nations, in addition to the UAE,” he declared.
“Jais,” an AI model that speaks Arabic, was introduced by G42 last year and can be accessed on Microsoft’s Azure cloud computing platform.
Microsoft has established prominent alliances with other AI startups, seeking to establish itself as a frontrunner in the field.
One of the key factors in Microsoft’s rise over the last year is said to be its collaboration with OpenAI, but regulators in the US and Europe are taking notice because they worry Microsoft is growing too powerful.
In recent months, Microsoft has also made a number of prominent foreign investments in AI. It declared a cooperation with the top French AI startup, Mistral, in February. Additionally, it committed billions of euros in funding for AI initiatives in Germany and Spain that same month.
Smith stated that “it’s all about this new AI era.” “A new sector of the economy is essentially emerging.”
