Microsoft Puts $1.5 Billion into AI Firm G42 for a Minority Stake
- Written by Deep Shikha Content Writer
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On April 15, Microsoft announced a $1.5 billion investment in UAE’s top AI firm, G42, securing a minority stake and a board seat. Microsoft President Brad Smith is set to join G42’s board of directors. This significant move in the AI industry strengthens US-UAE relations as the US competes with China for AI leadership.
As a part of this deal, G42 will utilize Microsoft Azure cloud service to run its AI applications and services, including its data centers and AI application sales. The company’s Arabic large language model (LLM), Jais, will also be available through Azure. This collaboration extends to deploying Microsoft’s cloud offerings within G42’s operations.
According to Reuters , the firm is well-connected in the region, chaired by Sheikh Tahnoon bin Zayed Al Nahyan, a prominent member of Abu Dhabi’s royal family and UAE national security adviser. It is also supported by the Emirati sovereign wealth fund Mubadala.
CNBC reports that this deal is highly unusual. According to Microsoft, the commercial partnership is supported by a unique binding agreement that promises the U.S. and UAE governments to uphold world-class best practices. This agreement aims to ensure the secure, trusted, and responsible use of AI. The involvement of the U.S. and UAE governments in this deal is significant.
“Both companies will move forward with a commitment to comply with U.S. and international trade, security, responsible AI, and business integrity laws and regulations,” stated Microsoft.
According to Forbes , Microsoft’s latest deal with G42 marks a significant move in the AI sector, positioning it among competitors like Google and OpenAI, vying for talent and technological advancements. Microsoft’s strategy includes preparing workers for an AI-driven future, investing $10 billion in ChatGPT’s creator, OpenAI, and forming a partnership with French AI startup Mistral.
In addition, Microsoft has revamped its keyboard design — the first significant hardware change in decades—introducing a new button for accessing its AI assistant, Copilot.
OpenAI CEO Sam Altman already highlighted the UAE’s potential as a global “ regulatory sandbox ” for AI testing, commending its regulatory framework. This Microsoft-G42 deal will significantly enhance the UAE’s efforts to become a central technology hub in the Middle East, focusing on sectors like artificial intelligence and cryptocurrency.
Tesla Announces Global Price Reductions Amid Falling Sales and Market Turbulence
- Written by Deep Shikha Content Writer
Tesla reduced prices on 3 of its 5 models in the US on April 19, followed by global price cuts in key markets, including China and Germany. All these price slashes happened over a weekend as the company is responding to declining sales, a Cybertruck recall , and increasing competition in the electric vehicle (EV) sector.
According to the Guardian , Tesla reduced the prices of the Model Y, its top-selling small SUV and the leading electric vehicle in the US, and the older, higher-end Models X and S. However, the prices of the Model 3 sedan and the Cybertruck remained the same.
The price cuts reduced the starting price of a Model Y to $42,990, $72,990 for a Model S, and $77,990 for a Model X, as mentioned on Tesla’s official website . On April 20, Tesla also lowered the US price of its “Full Self-Driving” driver assistance software from $12,000 to $8,000.
Two days after these price reductions were announced, Tesla also announced a reduction to the starting price of the revamped Model 3 in China by 14,000 yuan ($1,930) to 231,900 yuan ($32,000).
A Tesla spokesperson told the Guardian that these price reductions are also implemented in various other countries across Europe, the Middle East, and Africa.
The widespread price cuts by Tesla were made after the company reported a drop in global vehicle deliveries for the first time in nearly 4 years. This move is an effort to increase sales and regain market momentum during a challenging period for car manufacturers.
The Guardian points out that CEO Elon Musk also faces criticism over potential distractions. His acquisition of the social media company Twitter now rebranded as X, has sparked concerns among investors about his ability to maintain focus on Tesla’s core automotive business.
Tesla’s problems don’t end here. The Company’s stock value tumbled below $150 this week. Tesla also announced a significant workforce reduction to regain stability, planning to cut 10% or about 14,000 jobs.
Also, Tesla is pushing for shareholder approval of Musk’s controversial $56 billion compensation package . This effort follows a judge’s rejection of the package, describing it as an “unfathomable sum,” highlighting the conflict between Tesla’s leadership goals and external skepticism about its financial and management strategies.
Elon Musk also recently postponed a meeting with India’s Prime Minister Narendra Modi, citing “very heavy obligations” to Tesla. He announced on X his intention to reschedule the visit for later in the year, highlighting the intense demands within the company and impacting its international expansion efforts.
