Microsoft invests $1.5B in Abu Dhabi's G42 for AI growth & global expansion

Microsoft and G42 have announced a major development: Microsoft will strategically invest $1.5 billion in G42. By introducing the newest Microsoft AI technologies and skill development programs to the UAE and other countries worldwide

Manisha Sharma
New Update
Microsoft invests $1.5B in Abu Dhabi's G42 for AI growth & global expansion


Microsoft and G42 have announced a major development: Microsoft will strategically invest $1.5 billion in G42. By introducing the newest Microsoft AI technologies and skill development programmes to the UAE and other countries worldwide, this investment seeks to strengthen the partnership between the two organisations. Brad Smith, Vice Chair and President of Microsoft will join the G42 Board of Directors as a result of this expanded collaboration.


The investment aims to fortify the partnership between G42 and Microsoft, with a focus on expanding AI training initiatives and technologies not only in the United Arab Emirates but globally as well. Through this partnership, G42 will make it easier to offer cutting-edge AI solutions to major corporations and global public sector clients by deploying its AI applications and services on Microsoft Azure.

This improved collaboration will ensure that companies of all sizes operating in unexplored markets take full advantage of cloud computing and artificial intelligence (AI) while implementing AI solutions that adhere to the strictest international safety and security regulations.

Building on their long history of working together on AI and digital transformation projects, Microsoft's investment demonstrates their shared commitment to this strategic alliance. G42 will run its AI services and apps on Microsoft Azure to work with global public sector organisations and large corporations to offer state-of-the-art AI solutions. Furthermore, G42 and Microsoft will collaborate to provide digital infrastructure and cutting-edge AI technology to countries in the Middle East, Central Asia, and Africa. The goal of this project is to provide these nations with equitable access to services, meet important business and governmental requirements and maintain strict security and privacy standards.


"Microsoft's investment in G42 marks a pivotal moment in our company's journey of growth and innovation, signifying a strategic alignment of vision and execution between the two organizations. This partnership is a testament to the shared values and aspirations for progress, fostering greater cooperation and synergy globally." said: H.H. Sheikh Tahnoon bin Zayed Al Nahyan, Chairman of G42.

Empowering Global AI Talent and Innovation:

Microsoft and the UAE have a relationship that goes beyond just business. A $1 billion development fund is part of the partnership's goal to develop a diverse and talented workforce of AI professionals. This program benefits underprivileged countries in addition to fostering innovation and competitiveness in the United Arab Emirates. This alliance creates a model for international collaboration in promoting ethical AI development by fusing state-of-the-art technology with strict guidelines for safe and responsible AI development.


"Our two companies will work together not only in the UAE but to bring AI and digital infrastructure and services to underserved nations," said Brad Smith, Microsoft Vice Chair and President. "We will combine world-class technology with world-leading standards for safe, trusted, and responsible AI, in close coordination with the governments of both the UAE and the United States."  

An innovative agreement designed to guarantee that both governments follow the highest standards for the safe, reliable, and responsible development and application of AI underpins the commercial partnership. The security and compliance framework of Microsoft and G42's joint international infrastructure will be improved through close collaboration. Regarding security, responsible AI, trade, and business integrity, both companies pledge to abide by applicable laws and regulations in the US and abroad. Under a thorough Intergovernmental Assurance Agreement (IGAA) that was created in close consultation with the US and UAE governments, G42 and Microsoft are working together on this joint project.

Peng Xiao, Group Chief Executive Officer of G42, said: "Through Microsoft's strategic investment, we are advancing our mission to deliver cutting-edge AI technologies at scale. This partnership significantly enhances our international market presence, combining G42's unique AI capabilities with Microsoft's robust global infrastructure. Together, we are not only expanding our operational horizons but also setting new industry standards for innovation." 


Samer Abu-Ltaif, Microsoft Corporate Vice President and President, Central and Eastern Europe, Middle East and Africa, added: "Our investment in G42 stands as a testament to the thriving and dynamic tech landscape in the UAE and the broader region. This strategic partnership is well-positioned to ignite opportunities for our customers and partners, accelerate innovation, and fuel economic growth With G42, we will introduce cutting-edge technologies that will empower countries and markets to advance their digital agendas by harnessing the power of Cloud and AI." 

Milestones in the G42-Microsoft Collaboration:

The relationship between G42 and Microsoft has grown significantly over the last year, as evidenced by several noteworthy accomplishments. One significant step forward was the announcement by the two organisations in April 2023 of a collaborative project to develop AI solutions, especially for the public sector and other industries. This project makes use of Microsoft's broad network of partners and powerful cloud capabilities. Subsequently, a critical agreement was made in September 2023 to launch sovereign cloud services and to work together to fully utilise advanced artificial intelligence features within the Azure public cloud infrastructure.