REDMOND, Wash. (AP) 鈥 Microsoft is investing $1.5 billion in a technology firm based in the United Arab Emirates and overseen by the country鈥檚 powerful national security adviser.
Microsoft and the technology holding company G42 announced the deal Tuesday. As part of the agreement, Microsoft's president, Brad Smith, will join G42's board of directors.
The deal 鈥渨as developed in close consultation with both the UAE and U.S. governments,鈥 Microsoft said.
Based in Abu Dhabi, G42 runs data centers in the Middle East and elsewhere and has increasingly identified itself as an AI firm. It has built what's considered the world鈥檚 leading Arabic-language AI model, known as Jais.
Microsoft said G42 will run its AI applications and services on the U.S. tech giant's cloud computing platform, and the two companies will work to bring digital infrastructure to countries where G42 has established a presence in the Middle East, Central Asia and Africa.
G42 has previously said it would cut ties to Chinese hardware suppliers over American concerns it was too close to the Chinese government.
The company has faced spying allegations for its ties to . It has also faced claims it could have gathered .
, the UAE's national security adviser, is chairman of the company鈥檚 board.
The U.S. Commerce Department on Tuesday described the UAE as a 鈥済lobal player in cutting edge technology鈥 and said it is working with it and other countries toward 鈥渧erifiable commitments鈥 for the safe development and deployment of such technologies.
"When responsibly managed, investments like the one announced today have the potential to further innovation in digital technologies around the world,鈥 spokesperson Brittany Caplin said in a written statement.
