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Microsoft has announced it will invest $1. 5 billion in G42, an Emirati company with ties to China, as Washington and Beijing maneuver to secure their technological clout in the Persian Gulf.
By Paul Mozur and David E. Sanger
Paul Mozur reports on the generation and David E. Sanger reports from the White House.
Microsoft said on Tuesday it will invest $1. 5 billion in G42, an artificial intelligence giant from the United Arab Emirates, as part of a deal largely orchestrated by the Biden administration towards China as Washington and Beijing squabble over who will wield technological clout in the Persian country. Gulf Region and beyond.
As part of the partnership, Microsoft will license G42 to sell resilient AI chips to Microsoft facilities, which are used to develop and refine generative AI templates. In return, the G42, which is under scrutiny by Washington for its ties to China, will use Microsoft’s cloud facilities and adhere to a security agreement negotiated in detailed talks with the U. S. government. The U. S. government has put a number of protections on AI products shared with the G42. and includes an agreement to withdraw the Chinese apparatus from G42 operations, among other measures.
“When it comes to emerging technologies, you can’t be on China’s side and ours at the same time,” said Gina Raimondo, the commerce secretary, who has visited the Emirates twice to discuss security arrangements for this and other partnerships. .
The deal is highly unusual, Microsoft President Brad Smith said in an interview, reflecting the U. S. government’s common fear of protecting the intellectual assets of AI programs.
“It’s understandable that the U. S. is concerned that peak generation is being carried out through a reliable U. S. company,” said Smith, who will serve on G42’s board of directors.
This investment could simply help the U. S. fight China’s growing influence in the Gulf region. If successful, the G42 will join the U. S. group and reduce its ties with China. The deal could also be a way for U. S. corporations to leverage their technological leadership. in AI to steer countries away from Chinese technology while also reaping huge monetary rewards.
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