Amidst US-China trade war, Microsoft invests in UAE-based firm

American multinational company Microsoft will now invest $1.5 billion in a UAE-based technology firm which will be Supervised by the national security adviser of the country. 

This deal was jointly announced by Microsoft and Abu-Dhabi based, G42 company (technology holding company) on Tuesday. According to the Agreement, the president of Microsoft Brad Smith will now be part of the G42’s board of directors. 

According to Microsoft, the deal was developed in consultation with both the UAE and U.S. governments.

Identifying as an AI firm, G42 operates data-centers primarily in the Middle East and It is also operating in other locations. And has recently invented an Arabic language AI model called Jais. 

The American company further announced that its both AI applications and services will now be run by G42, in its cloud computing platform. 

It will also additionally enhance digital infrastructure in nations where the G42 company holds considerable presence. Primarily in the Middle East, Central Asia and Africa.

But this UAE-based company too isn’t without its fair share of controversies. G42 has recently faced spying due to its closeness with the mobile app allegedly identified as a spyware. Followed by the claims that it has secretly collected genetic data for the Chinese government from Americans. 

However, this deal comes around the time, when G42 had previously declared that it will sever its ties with Chinese hardware suppliers due to American concerns regarding the company’s proximity to the Chinese government. 

Spokesperson Brittany Caplin further announced in a written statement that with responsible management, the investments like these have the potential to expand innovation in digital technology in the whole world. 

“When responsibly managed, investments like the one announced today have the potential to further innovation in digital technologies around the world,”