Microsoft has announced an investment of 1.5 billion US dollars in the United Arab Emirates' leading artificial intelligence firm, G42. This move reinforces the commitment of the Abu Dhabi-based company to scale back its presence in China and instead utilize the US technology platform Azure for its AI applications.

The Agreement, Representing an Expansion of the Existing Partnership Between the Two Companies, Was Developed in Consultation with the Governments of the UAE and the USA. Brad Smith, President of Microsoft, Will Be Appointed to the Board of G42 Under the Terms of the Agreement.

"The US government has strongly encouraged Microsoft to expedite this process," Smith explained. This reflects the importance of the relationship between the two countries and emphasizes the need to have responsible companies like G42 and Microsoft at the forefront of technology development as well as standards for safety and responsible AI.

The partnership follows conversations behind the scenes between the U.S. government and the company from the Middle East, in which G42 agreed to withdraw from China and switch to American technology. According to people familiar with the talks, G42 conducted negotiations with the Bureau of Industry and Security of the U.S. Department of Commerce and reached an agreement last year. Under this agreement, G42 must reduce its presence in China or potentially face punitive measures from Washington.

In the further course of the deal, Microsoft will host some of its own applications in G42's data centers and use the partnership to reach customers in Africa and Central Asia. "There are markets where Microsoft and indeed no American technology company has a real data center presence," said Smith. "This is the kind of partnership that can probably bring the cloud and AI to the global south a decade faster than would otherwise be the case."

The Investment Agreement Signed During Smith's Visit to Abu Dhabi at the Beginning of the Month Is the Result of a Year's Discussions, Including Coordination with Government Representatives from Both Countries. In February, G42 CEO Peng Xiao Stated in an Interview that the Company Will Reduce its Presence in China and Instead Invest in Key Western Markets. This Came After a Leading US Legislator Urged the Commerce Department to Consider Trading Restrictions Against the Company Due to Its Connections to Beijing.