Microsoft Corp. (NASDAQ:MSFT) is set to unveil a substantial $1.5 billion deal with Emirati company G42 for the development of artificial intelligence technologies, as reported by The New York Times on Tuesday. This partnership marks a significant move in the tech industry, reflecting the growing importance of AI in global business strategies.

Under the terms of the agreement, Microsoft will empower G42 to sell services utilizing advanced AI chips, which are essential for training and tuning generative AI models. This provision will enable G42 to enhance its capabilities in the burgeoning field of artificial intelligence. In exchange, G42 will integrate Microsoft’s cloud services extensively and will benefit from a security agreement that has been the subject of detailed negotiations with the US government.

This strategic alliance is part of a broader geopolitical context, as indicated by the report. The Biden administration has orchestrated this deal to strategically position the United States in the technological race against China, particularly in the Gulf region where both Washington and Beijing are vying for technological and economic influence.

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