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Microsoft pumps $1.5B into UAE's G42 amid US-China tech power struggle

Washington reportedly threatened to punish G42 if it did not reduce its ties with Beijing and strengthen its US commitments.
Michael M. Santiago/Getty Images
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Microsoft’s $1.5 billion investment into the UAE-based artificial intelligence company G42 was the byproduct of closed-door negotiations between the US government and the Gulf firm in which it agreed to divest from China in favor of US technology, according to a report.

The deal, which Microsoft and G42 announced in two separate statements Tuesday, will give the US tech behemoth a significant minority stake in the Middle Eastern firm and a board seat. The exact size of the stake was not disclosed.

Microsoft President Brad Smith, who will take the board seat, said in a statement, "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."

The Silicon Valley-based business said the deal would cement the UAE's position as a global AI hub and that the companies will establish a $1 billion fund for developers.

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