The US and China are engaged in a tech Cold War, with the latest move being Microsoft’s $1.5 billion investment in the UAE’s AI giant G42.
G42 is an artificial intelligence company based in the UAE, working with China, which the Biden Administration aimed to prevent through this deal.
G42 is an AI giant focusing on biotechnology and surveillance, deeply embedded in Emirati security and associated with the country’s leadership.
The deal benefits the Biden Administration more than Microsoft, as G42 has agreed to security arrangements negotiated with the US government, including removing Chinese gear from its operations.
The US is concerned about China gaining access to crucial data and cutting-edge tech through companies like G42, posing a security threat.
The US and China are racing to exert tech influence in the Gulf region, where countries like the UAE are investing heavily in AI.
The Microsoft-G42 deal is either a prize for the UAE picking sides with the US over China or an attempt by the US to gain an edge in the tech Cold War.