Update:
According to Bloomberg, G42 has agreed to withdraw from China after negotiations with the US government. In return, the US government assured G42 of continued access to US technology, such as Nvidia chips. This decision also paved the way for the Microsoft investment mentioned below. G42 wants to use AI in fields as diverse as medicine and aerospace.
Original article:
Microsoft and G42, an Abu Dhabi-based AI and cloud computing company with ties to the UAE government, have entered into a strategic partnership to strengthen the United Arab Emirates' position as a global AI hub, Microsoft and G42 announced.
Microsoft is investing $1.5 billion in G42 to expand their collaboration in delivering Microsoft's latest AI technologies and skills initiatives in the UAE and other countries worldwide. As part of this partnership, Microsoft Vice President Brad Smith will join G42's board.
G42 will run its AI applications and services on Microsoft Azure and work with Microsoft to deliver advanced AI solutions to global public sector and enterprise customers. The two companies also plan to bring advanced AI and digital infrastructure to countries in the Middle East, Central Asia and Africa to provide equal access to services, Microsoft and G42 said.
The partnership will support the development of a skilled and diverse AI workforce and talent pool in the UAE and the region to drive innovation and competitiveness. One billion dollars will be invested in a developer development fund to achieve this goal.
G42 has links to China
G42, which is controlled by Sheikh Tahnoon bin Zayed, also works with major Chinese companies that the U.S. considers a security threat, including Huawei, the New York Times reported late last year. The newspaper cited U.S. intelligence concerns that G42 could serve as a conduit for the transfer of advanced U.S. technology to Chinese companies or the government.
G42 says it is working with several international technology companies, and this year reached out to U.S. companies such as Cerebras and Nvidia to move away from Chinese hardware. The company has partnerships with both Chinese companies like Huawei and American companies like Microsoft and Dell Technologies.
One of G42's international projects is to build the Condor Galaxy, one of the world's fastest AI supercomputers, with AI chips from Cerebras. The Arabic language model Jais was trained on the Condor Galaxy 1.
G42 CEO Xiao Peng emphasized that the company pays attention to privacy when working with partners and ensures that no sensitive data is shared. The partnership between Microsoft and G42 is also part of a government agreement to ensure leading global standards for safe, trustworthy, and responsible AI, according to both companies.
Abu Dhabi wants to become an AI center
Abu Dhabi has set its sights on becoming a global AI hub, relying on its abundant resources, low energy prices and political support to attract investors and talent, the Financial Times recently reported, adding that these efforts have also impressed OpenAI CEO Sam Altman.
G42 and OpenAI entered into a partnership in October 2023. Abu Dhabi's sovereign wealth fund, MGX, which is controlled by the same sheikh as G42, is also in preliminary discussions about possible funding for OpenAI's plans to build its own AI chip manufacturing infrastructure, according to the FT.
Microsoft vice president Smith said the two companies would not only work together in the UAE, but also bring AI and digital infrastructure and services to underserved countries. "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," Smith said.
