Microsoft Invests $1.5 billion in Abu Dhabi’s G42 to accelerate AI development and global expansion

A concerning investment to say the least.

Hello Everyone,

This is going to be a different kind of post. G42 was founded in 2018, so it’s really one of the most impressive AI startups in the Middle East. Now it’s almost like a vassal company of Microsoft, at least on paper with this new deal. G42 has very strong ties with the UAE power structure.

Today I’m obsessed with this huge move in AI funding that has geopolitical and AI infrastructure implications for the future of AI. Microsoft is setting up conditions that they are among the big winners of hyperscale AI.

G42 had ties with China but were forced to divest from China to allow this deal to go ahead. This deal is almost like a bribe to secure the UAE’s involvement with Sam Altman’s datacenter infrastructure global coalition.

Microsoft will invest $1.5 billion in United Arab Emirates-based artificial intelligence firm G42, giving the U.S. tech giant a minority stake and a seat on the board, which will of course be filled by Brad Smith.

Brad is positioning this as enhancing the UAE’s position, but really it’s divide and conqueror for the U.S. on the global stage in the AI arms race, and I think it’s an existential risk for global conflict in the geopolitics of AI.

Microsoft in their PR attempts to speak about it in agonistic terms:

• This strategic investment will enhance the UAE’s position as a global AI hub and provide further opportunities for partners and customers to innovate and grow.

• G42 and Microsoft will collaborate to ensure the benefits of secure AI technologies and cloud capabilities are responsibly shared with growing economies globally. 

• Microsoft’s Vice Chair and President Brad Smith will take a seat on the G42 Board.

• Both companies will support the establishment of a $1B fund for developers.

• The partnership includes a first of its kind Intergovernmental Assurance Agreement as both parties commit to world-leading standards in AI safety and security.

But the truth is this has significant geopolitical implications that positions Microsoft in the crossfire between the U.S. and China. I would not be surprised if this impacts Microsoft Research Asia in the long-term.