Microsoft plays high-stakes game in tech cold war with Emirates AI deal
Microsoft said Tuesday it will make a $1.5 billion investment in G42, an artificial intelligence giant in the United Arab Emirates, in a deal largely orchestrated by the Biden administration to defeat China as Washington and Beijing battle over who will exert technological influence in the Persian Gulf region and beyond.As part of the partnership, Microsoft will grant G42 permission to sell Microsoft services that use powerful AI chips, used to train and fine-tune generative AI models. In exchange, the G42, which has been under scrutiny by Washington for its ties to China, will use Microsoft's cloud services and adhere to a security agreement negotiated in detailed conversations with the US government. The agreement places a number of protections on AI products shared with G42 and in...