Microsoft And G42 Partners To Launch AI Centers In Abu Dhabi After $1.5 Billion Deal

Microsoft Corp. and G42 are collaborating to establish two artificial intelligence centers in Abu Dhabi, following a $1.5 billion deal and G42’s agreement to divest from China. 

TakeAway Points:

• Microsoft and G42 are building two AI centres in Abu Dhabi with an emphasis on social goals and responsible AI use, following a $1.5 billion agreement.
• Microsoft will open its first ‘AI for Good Research Lab’ in the region, aimed at supporting social goals such as advancing food security and strengthening climate resilience.
• In an effort to serve AI systems throughout the Middle East, Africa, and India, Groq Inc. and Aramco have partnered to construct a sizable data centre in Saudi Arabia.

Microsoft and G42 partnership

One center will focus on developing best practices and industry standards for responsible AI use. Additionally, Microsoft will open its first ‘AI for Good Research Lab’ in the region, aimed at supporting social goals such as advancing food security and strengthening climate resilience.

Brad Smith, vice chairman and president of Microsoft, emphasized the importance of this partnership: “We are committed to additional steps with G42 that advance responsible AI use for customers and that strengthen the relationship not only between our two companies, but between our two countries.” This collaboration builds on Microsoft’s existing partnership with G42, which aims to become an AI superpower in the Middle East. G42 is part of the $1.5 trillion empire of Sheikh Tahnoon bin Zayed Al Nahyan, a deputy ruler of Abu Dhabi and national security adviser of the UAE.

G42 has also partnered with OpenAI, the creator of ChatGPT, to expand in the Gulf region. However, the firm has faced criticism in Washington, with allegations of links to Chinese businesses, including Huawei Technologies Co. G42 has denied any connections to the Chinese government and their military industrial complex. The US has limited chip exports to the Middle East due to concerns that Chinese companies could access them through data centers in the region. Despite these concerns, the US recently approved the sale of Nvidia Corp. chips to G42.

Groq and Aramco AI Partnership

Artificial intelligence startup Groq Inc. has partnered with oil producer Aramco to build a massive data center in Saudi Arabia, aiming to become a hub for AI systems across the Middle East, Africa, and India. The data center, which will initially house 19,000 language processing units, is expected to be operational by the end of the year. The project is funded by Aramco and is estimated to cost “in the order of nine figures,” according to Groq CEO Jonathan Ross.

Groq’s partnership with Aramco Digital, a new unit of the oil giant, aims to harness AI to support Aramco’s core energy business and facilitate AI use by other firms. Ross highlighted the strategic advantages of building the data center in Saudi Arabia, including low energy costs, availability of land, and access to a large population within a 100 millisecond ping.

“Aramco is planning to do massive capital deployments for this, and it is a way to help diversify the economy away from oil,” Ross said.

Despite US government restrictions on exports of the latest AI chips, Groq does not expect to face any issues with its plans in Saudi Arabia. 

“We’ve been very open with Commerce about our intent to deploy here,” Ross stated. 

Groq has voluntarily decided not to sell to any Chinese companies or entities, even before the US crackdown. The company is also considering future collaborations with Aramco Digital.

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