Microsoft continues to invest in artificial intelligence. One of the latest examples is Microsoft’s deal with G42, an AI company based in the United Arab Emirates. The deal would give Vice Chair and President Brad Smith a board seat and a minority stake in the artificial intelligence company.

We are excited to announce a $1.5 billion investment from @Microsoft in G42, marking a significant step forward in our journey to lead in #AI innovation globally. pic.twitter.com/XJ0Q4WiZta

— G42 (@G42ai) April 16, 2024

G42, from doing business with China to announcing a deal with Microsoft

According to Financial Times, the deal between Microsoft and G42 comes after the artificial intelligence company severed ties with Chinese hardware suppliers, which were being investigated by U.S. lawmakers.

This investment is proof that the United Arab Emirates is interested in boosting its AI technology while building a solid alliance with companies in Silicon Valley. Brad Smith told the British economic outlet:

Given the importance of the technology and given how important it is to the two countries and two governments, we’ve taken this first step in close collaboration with the governments of both the UAE and the United States. We will take the next step and following steps in close collaboration with them as well.

In addition, both companies have the blessing of their countries’ governments. CNBC reported that both the United States and United Arab Emirates have been closely involved in the negotiations, Microsoft said in a statement:

Both companies will move forward with a commitment to comply with U.S. and international trade, security, responsible AI, and business integrity laws and regulations. The work on these topics is governed by a detailed Intergovernmental Assurance Agreement between G42 and Microsoft that was developed in close consultation with both the UAE and U.S. governments.