The move comes amid US-China tech power struggle.
Also, Washington reportedly threatened to punish G42 if it did not reduce its ties with Beijing and strengthen its US commitments.
Microsoft’s investment of $1.5 billion 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 cited by Al Monitor.
The deal, which Microsoft and G42 announced in two separate statements, will give the US tech giant a significant minority stake in the Middle Eastern firm and a board seat.
The exact size of the stake was not disclosed.
“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.” said Microsoft President Brad Smith., who will take the board seat.
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.
