Microsoft is gearing up for its new business endeavour in the United Arab Emirates, the tech major plans to invest USD 1.5 billion in G42, an artificial intelligence firm in the Middle East country, according to a media report on Tuesday.
Under this partnership, G42 will use Microsoft's cloud services and will follow a security agreement that has been extensively discussed with the US government.
The collaboration gives G42 the authority to sell any of the Microsoft services that run on AI chips. However, the agreement also includes a series of restrictions on the tech major’s AI products shared with G42. Additionally, it includes a provision to remove any Chinese equipment from the operations of the Emirati company, along with other measures, the report added.
Microsoft and G42 remained mute on this development, but the deal was indicated by Microsoft President Brad Smith, who will be a part of G42’s board. He said the US is naturally concerned about ensuring that a significant technology is protected by a reputable American company.
Meanwhile, according to reports, G42 decided to sell off its investments in China and initiated the extensive process of removing Chinese hardware due to US apprehensions regarding its connections with Chinese companies.