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Microsoft Commits $1.5 Billion to Advance AI Development in Partnership with G42

Microsoft invested $1.5 billion in G42, an Abu Dhabi-based artificial intelligence (AI) company. The investment is the latest in a series of collaborations by the company and marks the latest example of the growing importance of the United Arab Emirates (UAE) in the AI ​​space.

“Building on the two organizations' longstanding collaboration on AI and digital transformation initiatives, Microsoft’s investment deepens the mutual value of this strategic partnership,” the companies said in a news release on Tuesday.

“G42 will run its AI applications and services on Microsoft Azure and work with it to deliver advanced AI solutions for global public sector clients and large enterprises.”

The two companies will also collaborate to bring advanced AI and digital infrastructure to countries in the Middle East, Central Asia, and Africa, giving these countries “perfect infrastructure to ensure they receive and meet the highest levels of security and privacy address critical government infrastructure problems,” the release said.

The partnership will also see Microsoft chairman Brad Smith join the board of G42, which is making $1 billion in funding for AI developers.

“Our two companies will work together not only in the UAE but also in bringing AI and digital infrastructure best practices to underserved countries,” said Smith. “In close cooperation with the UAE and the US. governments, we will bring together a global technology of safe, reliable, and responsible AI.”

Earlier this year Sam Altman, CEO of OpenAI, said the UAE could act as a “regulatory sandbox” for global regulation of AI and its use. He emphasized the need to test AI in a controlled environment before implementing regulations.

A Bloomberg News report at the time noted that the UAE’s relationship with China led to the US. There was some panic among the G42, which offered to reduce its presence in China to address those concerns.

Meanwhile, PYMNTS wrote last month about the potential of AI to reshape jobs and spur economic expansion in the Middle East, citing a PwC study that suggests the region could capture 2% of AI’s total global benefits in by 2030, it will reach about $320 billion.

“The generation of students can be motivated not only awaiting the new evolutionary process but also drawing on local disciplines in the whole area” political Analysis Irina Tsukerman told PYMNTS in an interview.

Conclusion: Microsoft's $1.5 billion investment in AI development in partnership with G42 represents a significant move that highlights the transformative potential of AI technology leveraging both companies' collective expertise and resources for shiny, livable buildings also about permanent construction.