Microsoft drops $1.5b on G42

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G42 (company)
G42 (company)
Emirati AI development holding company
Founded
2018
Headquarters
Abu Dhabi, United Arab Emirates
Industry
Artificial intelligence, cloud computing
Microsoft has invested $1.5 billion in G42, an artificial intelligence and cloud computing company based in Abu Dhabi, United Arab Emirates. This investment is part of an expanded partnership between the two companies to accelerate AI development and build out the UAE's sovereign cloud capabilities. Key details of the Microsoft-G42 partnership include:
  • G42 will use Microsoft's cloud services and Azure infrastructure to develop AI solutions for industries such as healthcare, energy, finance, and the public sector in the UAE.
  • Microsoft will expand its data center presence in the UAE through a further partnership with Khazna Data Centers, a government-backed hosting provider.
  • The solutions developed will allow UAE organizations to secure sensitive data, access the latest Azure cloud and AI features, and comply with the country's data sovereignty laws.
  • Microsoft and G42 will work on a number of joint projects in the coming months, with more details to be announced.
The substantial investment comes amid some concerns from U.S. authorities that G42, which has ties to China, could potentially serve as a conduit for diverting sophisticated American technology to Chinese companies or the government. However, as of February 2024, G42 has reportedly divested all of its investments in China to address these issues. Overall, the partnership reflects Microsoft's continued expansion of its public sector and sovereign cloud offerings in the Middle East region, as it competes with rivals like Amazon and Oracle to capture growing demand for cloud services as organizations modernize their technology infrastructure.
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