Microsoft invests $1.5 billion in AI company G42, overseen by UAE national security adviser

REDMOND, Wash. (AP) — Microsoft is investing $1.5 billion in a technology company based in the United Arab Emirates and overseen by the country’s powerful national security advisor.

Microsoft and technology holding company G42 announced the deal on Tuesday. As part of the agreement, Microsoft President Brad Smith will join G42’s board of directors.

The agreement “was developed in close consultation with the UAE and US governments,” Microsoft said.

Based in Abu Dhabi, G42 manages data centers in the Middle East and elsewhere and has increasingly identified itself as an AI company. It has built what is considered the world’s leading Arabic-language AI model, known as Jais.

Microsoft said G42 will run its AI applications and services on the US tech giant’s cloud computing platform, and the two companies will work to bring digital infrastructure to countries where G42 has established a presence in the Middle East, Central Asia and Africa.

The G42 had previously said it would cut ties with Chinese hardware suppliers due to American concerns about being too close to the Chinese government.

The company has faced accusations of espionage for its ties to a mobile application identified as spyware. He also faced allegations that he might have gathered genetic material secretly from Americans to the Chinese government.

Sheikh Tahnoon bin Zayed Al Nahyannational security advisor of the United Arab Emirates, is chairman of the company’s board.