Microsoft, OpenAI and other large technology companies have entered the UAE market to develop AI business

As part of a broader strategic plan, Microsoft invested $1.5 billion in G42, an artificial intelligence company in the United Arab Emirates. The deal provides Microsoft with access to a large amount of data, a strong capital market and a more relaxed regulatory environment. "Microsoft opened a data center there a few years ago, and it has clearly been investing in the region," said Dan Romanoff, a technology analyst at Morningstar. Microsoft established its first cloud data center in the UAE in 2019. As part of the recent deal, G42 will use Microsoft's cloud computing platform Azure as the backbone for developing and deploying its artificial intelligence services to all customers. In addition to the UAE, Microsoft and G42 also plan to establish data centers in other countries, including East African countries. In addition, OpenAI CEO Sam Altman has also traveled to the UAE several times in the hope of establishing a global artificial intelligence alliance, and said earlier this year that the region could become a "regulatory sandbox" for global artificial intelligence testing. Industry observers believe that Microsoft and OpenAI's strong interest in the UAE is part of an effort to consolidate its leadership in artificial intelligence and expand its global footprint, especially in emerging markets. Romanoff said: "For Microsoft, this investment is more about attracting customers on its Azure infrastructure and strengthening Microsoft's early leadership in all areas of artificial intelligence by expanding the use of OpenAI." He added that in the past few quarters, the UAE, especially its capital Abu Dhabi, has developed from a regional artificial intelligence center to a global artificial intelligence center. Leading companies such as Microsoft and OpenAI "are doing pioneering work in this regard." (CNBC) Previously in April, Microsoft announced a strategic investment of US$1.5 billion in artificial intelligence company G42. This investment will strengthen the cooperation between the two companies and bring Microsoft's artificial intelligence technology and skills programs to the UAE and other countries in the world. The two companies will support the creation of a US$1 billion developer development fund to promote innovation and competitiveness in the UAE and other regions. In addition, Microsoft Vice Chairman and President Brad Smith will join the G42 board of directors.