Microsoft is partnering with an Emirati company to develop artificial intelligence for various applications.
The Redmond, Washington-based company said it will invest $1.5 billion in g42, an AI company headquartered in Abu Dhabi, United Arab Emirates. Brad Smith, vice chair and president of Microsoft, is joining G42’s board of directors as part of the deal.
Under the partnership, the companies aim to deliver advanced AI tools with Microsoft Azure for customers in the financial services, health care, energy, education and government sectors.
The companies will also target increased AI adoption in the Middle East, Central Asia and Africa.
The investment comes months after G42 severed ties with China-based organizations such as Huawei.
In January, U.S. Rep. Mike Gallagher instructed the Department of Commerce to investigate whether G42 should be included in an export blacklist over its alleged associations with the Chinese regime.
In a statement, Microsoft said the companies will comply with U.S. and international trade laws and regulations.
“The work on these topics is governed by a detailed Intergovernmental Assurance Agreement between G42 and Microsoft that was developed in close consultation with both the UAE and U.S. governments,” it added.
G42 is a long-time Microsoft partner. In 2023, it committed to offering Microsoft Cloud for Sovereignty to UAE-based organizations. Jais, G42’s Arabic large language model, is available in Microsoft’s Azure AI Model Catalog.