What's happened
Microsoft has announced a $1.5 billion investment in G42, an AI firm based in the UAE. The deal, brokered by Commerce Secretary Gina Raimondo, will allow G42 to use Microsoft's Azure cloud services for its AI applications, while G42 will divest from Chinese companies under U.S. pressure.
Why it matters
Microsoft's investment in G42 not only strengthens its position in the AI market but also aligns with American efforts to curtail Chinese access to AI technologies. The deal has significant geopolitical implications, potentially impacting the balance of power in the global AI sector.
What the papers say
The New York Times highlights the collaboration between the Biden administration and Microsoft to counter Chinese tech influence in the Gulf. In contrast, Business Insider UK focuses on the strategic maneuvering by Microsoft to secure victory in the AI market.
How we got here
G42, a key player in the UAE's AI sector, faced scrutiny for its ties to Chinese businesses, including Huawei. The investment by Microsoft reflects a shift towards American technology and away from Chinese influence.
Common question
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Microsoft Corporation is an American multinational technology company with headquarters in Redmond, Washington. It develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and related services.
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Group 42 also known as G42, is an artificial intelligence and cloud computing company that was founded in Abu Dhabi, United Arab Emirates in 2018.
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
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China, officially the People's Republic of China, is a country in East Asia. It is the world's most populous country, with a population of around 1.4 billion in 2019.
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Bradford Lee Smith is an American attorney and technology executive currently serving as President of Microsoft, concurrently serving as chief legal officer.