Microsoft deal forces G42 to end relations with Huawei on AI security: Report

Microsoft is reportedly forcing the UAE-based G42 company to cut ties with Huawei on AI security. The American MNC sees the elimination of the Chinese tech giant as a “positive development” for both the AI company as well as the regional consumers.

G42 (also known as Group 42) is a UAE-based AI development company in Abu Dhabi. It serves as a global leader in creating visionary AI products for a better future. The firm also builds computer programs using high-end technologies and components.

According to Reuters, Microsoft plans to invest around $1.5 billion in the G42 firm to accelerate AI development. Under this agreement, G42 will end relations with Chinese partners and switch to Microsoft cloud services for its AI applications.

Microsoft believes that this will lead to a secure partnership, unlike that of Huawei. The US company also mentioned that this deal will help the UAE enhance its position as a global AI hub. It will eventually increase its economic growth with better security.

The White House Technology advisor – Tarun Chhabra says that choosing Microsoft over Huawei will result in a positive development for both G42 and UAE.

Microsoft deal forces G42 to end relations with Huawei on AI security (Image Credits: Huawei Central)

“In a place like UAE… where you had G42 working very closely with Huawei, for example, we have an interest in changing that picture.” We are keeping a close eye on the latest models as they release to know if they are open-source and what are their capabilities. – says Tarun Chhabra.

Regarding relations with Huawei, G42 has been using parts (chips) made by Huawei for its AI products and services. This has ultimately given China, a significant slot in the global AI value chain including hardware and relevant fields.

Although thereafter, the G42 has been eyed by CIA investigation. It also obtained the order to break its bonds with Huawei in December last year. Yet it didn’t completely cut off ties with the Chinese firm as it appeared highly uncertain at that moment.

G42 (AI firm) is once again facing difficulties in choosing between Huawei and the U.S. partners like Microsoft, following the foreign export trade threats. Though a decision by the UAE company is still pending.

(Source – Reuters)