Microsoft’s recent partnership with G42, a UAE-based tech investment powerhouse backed by the government, involves a staggering $1.5 billion. This move signifies a remarkable shift in the high-stakes global AI landscape. The significance of this deal is twofold: it expands the reach of American AI and simultaneously sidelines China from the UAE market. This places Microsoft’s AI operations at the core of U.S. geopolitical interests and policies. The deal, partially facilitated by Commerce Secretary Gina Raimondo, grants Microsoft President Brad Smith a position on the G42 board.

The agreement allows G42 to deploy UAE’s indigenous AI models on Microsoft’s Azure platform. Microsoft stands to recoup a significant portion of its investment as G42 compensates for its Azure cloud services. Such arrangements have previously drawn antitrust attention in the U.S., EU, and U.K. G42 plans to remove Huawei equipment, manufactured in China, from its systems. Under U.S. pressure, G42 divested from Chinese companies, including TikTok owner Bytedance, in February. As Raimondo stated to the New York Times, “When it comes to emerging technology, you cannot be both in China’s camp and our camp.” The deal underscores the advantages that companies and governments can gain if they align with Washington rather than Beijing on AI development and governance.

Following Microsoft’s victory, other tech giants with substantial government contracts, like Google and Amazon, are also likely to capitalize on the market for AI diplomacy.

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Keywords: #ai #ainews #artificialintelligence