Microsoft's relationship with G42, a UAE-based AI company, has fueled national security concerns, with the Mideast caught between the U.S. and China.
Microsoft invested $1.5 billion in the United Arab Emirates ' top artificial intelligence firm, G42, as tech rivals including Amazon and Google also expand in the Middle East and leading venture firms pour money into the region.
The UAE's tech ecosystem, free from political wrangling and barriers inherent in democratic legal systems, is overseen by Emirati authorities who have a more lenient view than many Western nations of the use of anonymized citizen data to train AI models. In, the UAE's autocratic, state-capitalist governance is seen as an advantage, enabling smooth and speedy mobilization of substantial resources towards tech leadership goals.
Power availability, from oil to natural gas and solar, in the UAE can also help with new data centers, shifting compute away from overstrained electricity grids in other parts of the world. Over the past few quarters, the UAE, particularly its glitzy capital Abu Dhabi, have grown from regional AI hub to become a global AI center, according to Feldman. Leaders like Microsoft, OpenAI and others "are doing pioneering work there," he said.
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