According to Odaily, Microsoft has invested $1.5 billion in UAE-based artificial intelligence company G42 as part of a broader strategic plan. This investment provides Microsoft with access to extensive data, substantial financial markets, and a more relaxed regulatory environment. Dan Romanoff, a technology analyst at Morningstar, noted that Microsoft had established a data center in the UAE a few years ago and has been investing in the region since then. In 2019, Microsoft set up its first cloud data center in the UAE. As part of the recent deal, G42 will use Microsoft's cloud computing platform Azure to develop and deploy AI services for its customers. Beyond the UAE, Microsoft and G42 also plan to establish data centers in other countries, including those in East Africa. Additionally, OpenAI CEO Sam Altman has made multiple visits to the UAE, aiming to establish a global AI alliance and suggesting earlier this year that the region could serve as a 'regulatory sandbox' for global AI testing. Industry observers believe that the interest of Microsoft and OpenAI in the UAE is part of their efforts to solidify their leadership in AI and expand their global footprint, particularly in emerging markets. Romanoff stated that for Microsoft, this investment is primarily about attracting customers to its Azure infrastructure and reinforcing its early leadership in all AI fields by expanding the use of OpenAI. He added that in recent quarters, the UAE, especially its capital Abu Dhabi, has evolved from a regional AI hub to a global AI center. Leading companies like Microsoft and OpenAI are pioneering work in this area. In April, Microsoft announced a strategic investment of $1.5 billion in AI company G42. This investment will strengthen the collaboration between the two companies, bringing Microsoft's AI technology and skills programs to the UAE and other countries. The two companies will support the creation of a $1 billion developer development fund to drive innovation and competitiveness in the UAE and other regions. Additionally, Microsoft's Vice Chairman and President Brad Smith will join the G42 board.
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