The New York Times reported on Tuesday that Microsoft plans to invest 1.5 billion USD in UAE-based artificial intelligence company G42.

G42 sold its assets in China and began the long process of moving Chinese equipment out of the United States due to concerns about interactions with the Chinese.

The newspaper reported that G42 will utilize Microsoft's cloud services and adhere to a security arrangement discussed with the US government as part of the partnership.



According to the report, the G42 will have the capability to offer Microsoft services utilizing advanced AI chips for sale.

The New York Times said that the agreement establishes a series of protections for artificial intelligence products shared with G42 and includes an agreement to keep Chinese equipment out of the Emirati company’s operations, among other steps.

The newspaper quoted Microsoft President Brad Smith, who will hold a seat on the G42 board of directors, as saying: “It is natural for the United States to be concerned that the most important technology is being guarded by a trusted American company.”

Microsoft and G42 did not immediately respond to Reuters' request for comment

Also Read: One97 Communication, the parent company of Paytm, has given approval for the allocation of 91,250 stock options