Microsoft Deepens Its Commitment to AI Development in the UAE
Based in Abu Dhabi, G42 serves as the United Arab Emirates’ sovereign artificial intelligence company. In a strategic move earlier in 2023, Microsoft signed a Memorandum of Understanding (MoU) to explore collaborative opportunities in business development and marketing. Following this, in 2024, Microsoft announced a significant equity investment of $1.5 billion into G42 aimed at enhancing AI solutions through Microsoft Azure for organizations across the Middle East, Central Asia, and Africa.
Beyond its investment in G42, Microsoft has allocated substantial resources to the UAE, with over $4.6 billion invested in AI technology and cloud data centers and an additional $1.2 billion dedicated to local operational expenses and the cost of goods sold.
Major Investment Plans through 2029
Recently, Microsoft announced an expanded investment strategy totaling more than $7.9 billion in the UAE from 2026 to 2029. This comprehensive initiative encompasses $5.5 billion earmarked for capital expenditures related to AI and cloud infrastructure, alongside nearly $2.4 billion for intended local operational expenses and goods sold.
Advanced Technology and Equipment Acquisition
In a notable development, Microsoft has positioned itself as a pioneer by securing export licenses from the U. S.Commerce Department under the Biden administration, allowing the company to export GPUs to the UAE. This initiative has enabled the import of approximately 21, 500 Nvidia A100 GPUs, incorporating various chip models, including A100, H100, and H200. This year marks another milestone, as Microsoft received approval to ship an additional equivalent of 60, 400 A100 chips, enhancing its capacity with advanced Nvidia GB300 GPUs.
The GPUs will facilitate access to sophisticated AI models from reputable sources, including OpenAI, Anthropic, and other open-source platforms, catering to government entities, startups, enterprises, and developers in the region.
Leader’s Insight on the Strategic Move
Brad Smith, Microsoft’s Vice Chair and President, emphasized the company’s dedication to the UAE and the strategic partnership between the two nations:
Microsoft is committed to the future of the UAE and a strong relationship between our two nations. We believe in the UAE’s long-term economic vision and the role the UAE and the U. S.continue to play together to support peace, stability, and growth across the Middle East.
As the UAE continues to position itself as a regional technology hub, Microsoft’s substantial investments will likely play a critical role in driving innovation and growth within the AI sector.
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