Microsoft Corp. has invested $1.5 billion in UAE-based AI company G42, with oversight from the UAE's national security adviser.

The investment aims to propel AI technology and applications, concentrating on security and technological advancement.

Microsoft's investment secures a minority stake in G42 and places Brad Smith, Microsoft's Vice Chair and President, on G42's board.

The partnership required discussions with the Biden administration and involved G42 distancing itself from Huawei and reducing its operations in China.

G42 will leverage Microsoft's Azure cloud platform for AI development, and the partnership includes a $1 billion developer fund and joint data center projects in emerging markets.

This strategic move highlights the significance of AI in the global market and represents a blend of technology and government collaboration, bolstering Microsoft's role in the AI industry and Azure's expansion.