Microsoft is building further on its plans to develop Artificial Intelligence (AI) and accelerate its adoption in the Gulf region. The technology giant is now investing a whopping USD 1.5 Billion into G42, an AI technology holding company from Abu Dhabi.
The announcement about the investment comes just a little over a month after Microsoft partnered with du, a telecom major from the United Arab Emirates (UAE) to increase adoption of generative AI, and just weeks after it launched an AI Center of Excellence in Riyadh in the Kingdom of Saudi Arabia (KSA) in partnership with PwC.
AI and digital infrastructure in MENA
The UAE has emerged at the largest data center hub according to a report by Knight Frank, a leading independent global property consultancy. According to the report titled Data Centers – The MENA Report, in 2023, the UAE recorded a 15.3% increase in live IT capacity, reaching 235.3 MW. KSA also has ambitious plans surrounding digital transformation as envisioned in Saudi Vision 2030. So much so that it has become the fastest growing data center market in the Middle East.
Stephen Beard, Co-Head of Global Data Centers, Knight Frank, has explained the findings of this resport saying, “Across the Middle East, over a quarter of the population is between 15 and 29 years of age. This section of the population is important to future data centre growth as it comfortably embraces technology for a broad spectrum of educational, professional, and social needs.”
With the explosion of emerging technologies like AI, Machine Learning (ML), Internet of Things (IoT), the demand is only going to go up. As the UAE and KSA clamour to build and upgrade their digital infrastructure, tech giants like Microsoft are also pushing for increased AI adoption.
Microsoft’s AI plans with G42
In a press release, G42 said that the investment would bring the latest Microsoft AI technologies and skilling initiatives to the UAE and other countries around the world. It further said, “G42 will run its AI applications and services on Microsoft Azure and partner to deliver advanced AI solutions to global public sector clients and large enterprises. G42 and Microsoft will also work together to bring advanced AI and digital infrastructure to countries in the Middle East, Central Asia, and Africa, providing these nations with equitable access to services to address important governmental and business concerns while ensuring the highest standards of security and privacy.”
“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.”
Peng Xiao, Group Chief Executive Officer of G42, said, “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.”
Microsoft and G42 have been working closely for over a year now. In April 2023 they announced a plan to jointly develop AI solutions tailored for the public sector and industry. In September 2023, the companies entered into an agreement to introduce sovereign cloud offerings and collaborate on unlocking the potential of advanced AI capabilities on the Azure public cloud platform. In November 2023, Microsoft announced the availability of G42’s Jais Arabic Large Language Model on the new Azure AI Cloud Model-as-a-Service offering.
As they move forward, both companies will also comply with US and international trade, security, responsible AI, and business integrity laws and regulations. The work on these topics is governed by a detailed Intergovernmental Assurance Agreement (IGAA) between G42 and Microsoft that was developed in close consultation with both the UAE and US governments.
