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Microsoft invests $1.5 billion in UAE’s G42, securing a minority stake in the company

Rasmal Press RoombyRasmal Press Room
April 17, 2024
in Funding, News
0
Microsoft Announces Strategic Investment in G42 to Advance AI Solutions Globally
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  • Microsoft and G42 collaborate to deliver advanced AI solutions across the Middle East, Central Asia, and Africa using Microsoft Azure.
  • Microsoft invests $1.5 billion in G42 for a minority stake, reinforcing the partnership’s commitment.
  • The alliance targets various sectors, including finance, healthcare, energy, government, and education, to drive innovation and transformation.
  • The establishment of a $1 billion fund will support developers in enhancing their AI skills in the UAE and the broader region, fostering innovation and talent development in the field of artificial intelligence.

Microsoft has announced a strategic partnership with G42, a prominent AI company based in the UAE. The aim is to co-innovate and deliver advanced AI solutions across the Middle East, Central Asia, and Africa using Microsoft Azure. 

G42 is a leading provider of AI solutions and cloud computing services that was established in 2018. It operates under the leadership of Sheikh Tahnoon bin Zayed, who serves as the UAE’s national security advisor.

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As part of the collaboration, Microsoft will invest $1.5 billion in G42 for a minority stake, cementing the relationship. Brad Smith, Microsoft Vice Chair and President, will join G42’s board of directors, strengthening the synergy between the companies.

This alliance significantly advances G42’s strategy of providing generative AI and next-generation infrastructure and services across various sectors. These sectors include financial services, healthcare, energy, government, and education. 

Leveraging the capabilities of the Microsoft Cloud and its AI features, the partnership aims to drive innovation and transformation in emerging markets.

Microsoft and G42 Partnership

The commercial partnership is grounded in a commitment to uphold the highest standards of security, trust, and responsibility in AI development and deployment. Microsoft and G42 have entered into a binding agreement with assurances to the US and UAE governments. 

This agreement outlines a robust framework to ensure compliance with US and international laws and regulations governing trade, security, responsible AI, and business integrity.

Central to the collaboration is G42’s endorsement of Microsoft’s cloud platform. G42 will expand its utilization of Microsoft Cloud offerings, demonstrating confidence in Microsoft as the preferred partner for enhancing services and delivering value-added solutions to customers. This involves migrating G42’s data platform and essential technology infrastructure to Microsoft Azure, capitalizing on its industry-leading performance, scalability, and security features.

The migration to Azure will facilitate AI product development, enabling G42 to create scalable services with faster delivery times for customers worldwide. The partnership aims to accelerate AI transformation in emerging markets, fostering equitable growth in AI on a global scale.

Both companies are committed to upholding their obligations under the detailed intergovernmental assurance agreement developed in consultation with the UAE and US governments. This agreement underscores the shared commitment to responsible AI development and international compliance.

Advancing AI Accessibility in the Middle East

G42 is a prominent leader in AI technology, dedicated to advancing global accessibility and progress. The company collaborates closely with Microsoft, making significant strides in optimizing Cloud and AI solutions, particularly in the Middle East region. 

Last year, G42 demonstrated its commitment by being among the first partners to embrace the Microsoft Cloud for Sovereignty offering, which is specifically tailored for organizations in the UAE. This initiative aims to empower the public sector and regulated industries by leveraging new platform capabilities to secure sensitive data. 

Additionally, it provides access to the latest cloud and AI features offered by Azure while ensuring compliance with local privacy and regulatory standards. G42’s in-depth understanding of UAE sovereignty requirements and technical expertise plays a pivotal role in customizing the Microsoft Cloud for Sovereignty to meet the specific needs of customers.

Microsoft recently announced Jais, G42’s Arabic Large Language Model (LLM), marking a significant milestone in AI advancement for the Arabic-speaking world. With over 400 million Arabic speakers globally, Jais offers a gateway for exploring the potential of generative AI. 

This groundbreaking model, developed in collaboration with Cerebras, Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), and Med42 LLM, facilitates streamlined medical reporting through its generative AI capabilities.

The expanded partnership with Microsoft is poised to accelerate the adoption of G42’s pioneering AI products and services, notably Jais, by making them accessible through Microsoft Azure. This move not only broadens the reach of innovative AI solutions but also strengthens the technological ecosystem in the Middle East.

By combining their expertise, G42 and Microsoft are driving transformative change in the AI landscape, particularly in the Middle East. 

Through initiatives like the Microsoft Cloud for Sovereignty and the availability of Jais in the Azure AI Model Catalog, both entities are empowering organizations and individuals to harness the full potential of AI technology while ensuring compliance with local regulations.

FAB Partners with Core42 and G42 for Digital Transformation in the UAE

First Abu Dhabi Bank (FAB), the largest bank in the UAE, has partnered with Core42, a subsidiary of G42, to undergo a digital transformation journey. This collaboration involves migrating FAB’s data center and workload to Azure, the Microsoft Azure trusted cloud platform, leveraging Core42’s sovereign controls platform. This platform is built on Azure and ensures the highest standards of data sovereignty and compliance with UAE regulations.

In March of this year, FAB announced its partnership with Core42 to accelerate its digital transformation. This collaboration involves migrating FAB’s data center and workload to Azure, allowing the bank to leverage Core42’s sovereign controls platform. This platform, built on Azure, ensures the highest standards of data sovereignty and compliance with UAE regulations.

One notable aspect of G42’s initiatives in the healthcare sector is its subsidiary, M42. M42 is collaborating with leading institutions to advance precision medicine. One such partnership involves the Broad Institute of MIT and Harvard, Microsoft, and the International Centre for Genetic Disease (ICGD).

Together, these partners are utilizing Terra, a scalable and secure platform for biomedical research. Terra, powered by Microsoft Azure, enables researchers to access and analyze anonymized genomic data from the Emirati Genome Programme, which has already completed over 500,000 whole genome sequences.

By applying AI technologies to this vast data source, the collaborators aim to advance clinical genomic research, disease prevention, and support precision medicine and life science strategies globally. This partnership underscores the potential of AI-driven approaches to transform healthcare and improve outcomes for individuals worldwide.

Driving Digital Transformation Across Emerging Markets

In addition to offering advanced AI capabilities, the collaboration between Microsoft and G42 promises benefits that extend beyond the borders of the UAE, particularly in enhancing the cloud computing experience for enterprises. 

By expanding low-latency data centre infrastructure into emerging markets, the partnership aims to accelerate digital transformation across various industries in these regions.

This initiative holds the potential to provide countries across the Middle East, Central Asia, and Africa with broader access to services and technologies. This expanded access will empower them to tackle their most pressing business challenges while upholding the highest standards of security and privacy.

Moreover, the partnership is set to bolster the development of a skilled and diverse AI workforce, which will serve as a driving force for innovation and competitiveness not only for the UAE but also for the broader region. 

To support this endeavor, Microsoft and G42 have committed to investing $1 billion in a fund dedicated to nurturing developers and fostering talent in the field of AI.


Follow us on Instagram, LinkedIn, and Twitter for startup & business news and inspiring stories of MENA businesses, entrepreneurs, startups, innovators, investors, and change-makers.

To report any issue or error in the story, please email us editor [at] rasmal [dot] com.

Last Updated on April 17, 2024 by Safiya K

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Rasmal Press Room brings you press releases and updates from a wide array of startups, businesses and tech industries in the MENA region. This section features content directly from industry leaders and organizations, providing our readers with up-to-date information on the latest news and trends. Please note that these articles are sourced externally and may not represent Rasmal's editorial perspective.

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