What is G42?
G42 is an artificial intelligence giant based in the UAE, the United Arab Emirates. Now G42 is a big deal in the region. They're working with the Chinese. They were working with the Chinese. The Biden administration did not like that. So they wielded money in Microsoft and got a $1.5 billion deal. That's the money Microsoft will invest in G42. What does it mean for the US, China and the UAE? Our next report tells you. This may come as a shock, because there's a high probability that you've never heard this name before.
But in the Gulf, G42 is a big deal. This is an artificial intelligence giant. It's based in the United Arab Emirates. G42 focuses on biotechnology and surveillance. It is deeply embedded in the Emirati security. Several of the G42's top executives are associated with dark matter. That's another Emirati firm. It focuses on cyber intelligence and hacking and employs former spies. What's more, the chairman of G42 is the Emirates National Security Advisor. He's also the brother of the country's ruler. So G42 is a big deal. And now it has signed a deal with Microsoft. Under the partnership, G42 can use Microsoft's cloud computing platform, Azure. But what does Microsoft get out of this? A couple of things. Microsoft gets a minority stake in G42. Its vice chair gets a seat on the G42 board.
Plus, Microsoft will potentially have access to huge Emirati wealth. But here's the catch. This deal benefits the Biden administration more than it does Microsoft. Because, according to the deal, G42 will accede to a security arrangement. which has been negotiated with the US government. What does it say? There will be protections on the AI products shared with G42. And the AI firm will completely strip Chinese gear out of its operations. For months now, G42 has been under Washington's scrutiny for its ties to China. Last year, the US declared that G42 is connected to an expansive network of companies that support the Chinese military's technological advancement. The US is concerned that powerful AI can be used by China. And Beijing gaining access to crucial data and cutting-edge tech is a security threat to Washington.
So top US security aides have been trying to lure businesses. They are deepening ties with tech firms the world over, especially the ones China is also interested in. And the Gulf is a big player here. It's trying to diversify and reduce its reliance on oil. So many leaders in the region, like the UAE and Saudi Arabia, are part of the AI gold rush. Major investors are keen. Hundreds of billions of dollars are up for grabs. And the US and China have been racing to exert tech influence here through money and forewarnings. For instance, the US has clearly told the UAE that When it comes to emerging technology, you cannot be both in China's and our camp. And G42 has been paying heed. In December last year, G42 severed its links to Chinese hardware suppliers.
So either the new accord is a prize for picking sides, for helping the US box out China in the Gulf, or, at the very least, this is America striking while the iron is hot, in hopes of getting an edge in the tech cold war.
