Microsoft$1.5 billion to be invested in top artificial intelligence in UAE (Aye) operator G42 has acquired a minority stake and a board seat, becoming the latest bet on AI technology and highlighting the alliance between the United States and the United Arab Emirates.According to people familiar with the matter, US officials Initiated behind-the-scenes discussions with G42 to provide AI technology andHuida(Nvidia) chips and other terms in exchange for the G42 agreeing to sell Chinese assets and switch to American technology.

According to the agreement, Brad Smith, vice president and president of Microsoft, will join the G42 board of directors, and G42’s AI applications (apps) will use Microsoft’s cloud computing platform Azure. Details of the terms of the agreement and the G42’s valuation were not disclosed.

Smith and G42 CEO Xiao Peng said in an interview that the agreement will expand the existing collaboration between the two companies and strengthen the UAE’s position as an AI hub.

When G42 reached an agreement with Microsoft, it also held discussions with the United Arab Emirates and the US government. Bloomberg News reported that the G42 had negotiated with the US Commerce Department’s Bureau of Industry and Security (BIS) and reached an agreement last year, with the G42 agreeing to reduce its business in China or face punitive measures from Washington. May have to face. The talks are part of the Biden administration’s efforts to rein in Beijing’s technological capabilities and garner global support.

G42 CEO Xiao Peng told Bloomberg in February that it would sell Chinese assets, but details of the decision were not made public. With the support of the US National Security Council, BIS is said to have pushed US officials to contact the UAE last summer and asked the company’s top executives to choose a side between the United States and China. will be. Participants in the talks included Xiao Peng, UAE National Security Advisor Tahnoun and UAE Ambassador to the United States Otaiba.

The exchange condition for G42 to sell its Chinese assets is that it can continue to receive American AI technology, including Huida chips, one of the people said. But for the G42, this agreement requires removing Chinese technology from the system, which is costly.

A spokesperson for the G42 said that the decision to sell Chinese assets was driven by a desire to cooperate with the world’s most advanced AI technology companies, although all multinationals are influenced by geopolitical factors, but for the company with Microsoft The opportunity to join hands and its partner OpenAI is a real opportunity for economic and technological transformation. These opportunities clearly require a break from relations, equipment, and services with China and are making a difference in verifiable ways.

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