Microsoft Invests $1.5B in UAE AI Firm, Signaling Closer US Ties Amid China Concerns

Microsoft is investing $1.5B in G42, a major UAE AI company that has ties to China, signaling strategic alignment with the US amid geopolitical tensions.

The US is concerned about G42's relationships with Chinese firms like Huawei and has considered restricting G42's access to US technologies.

The UAE has increased economic ties with China recently, worrying Washington. Microsoft's investment appears aimed at aligning G42 closer with the US.

G42 is divesting its China-related investments and claims it will phase out Chinese hardware, potentially to ease US concerns.

The Microsoft deal designates it as G42's cloud provider, gives it extensive regional market access, and launches a $1B AI skills development fund.