April 16 (Reuters) - Microsoft ( MSFT ) plans to invest
$1.5 billion in G42, an artificial intelligence firm in the
United Arab Emirates, the New York Times reported on Tuesday.
G42 had divested its investments in China and began the
lengthy task of pulling out Chinese hardware amid U.S. concerns
over its relationship with Chinese businesses.
Under the partnership, G42 will use Microsoft's ( MSFT ) cloud
services and accede to a security arrangement negotiated in
detailed conversations with the U.S. government, the newspaper
said.
G42 will also be able to sell Microsoft ( MSFT ) services that use
powerful AI chips, the report added.
The agreement places a series of protections on the AI
products shared with G42 and includes an agreement to strip
Chinese gear out of the Emirati firm's operations, among other
steps, the NYT said.
Microsoft ( MSFT ) President Brad Smith, who will take a seat on
G42's board, was quoted by the paper as saying "the U.S. is
quite naturally concerned that the most important technology is
guarded by a trusted U.S. company".
Microsoft ( MSFT ) and G42 did not immediately respond to a Reuters
request for comment.