Microsoft expands G42 partnership with $1.5 billion investment

G42’s China market pivot

The commercial partnership between Microsoft and G42, according to the joint statement, is backed by assurances to both governments through a first-of-its-kind agreement to apply responsible development and deployment of AI.

“Both companies will move forward with a commitment to comply with US and international trade, security, responsible AI, and business integrity laws and regulations,” the companies said, adding that the work on these topics is governed by a detailed Intergovernmental Assurance Agreement (IGAA) between G42 and Microsoft that was developed in close consultation with both the UAE and US governments.

The fact that G42 has agreed to comply with US trade regulations and the timing of the investment could spark speculations that G42’s pivot from the Chinese market could be behind the deal.

The saga began in January when US lawmakers called for an investigation of G42 over its association with Chinese entities.