Microsoft AI Deal With UAE’s G42 at Risk Over National Security Fears

US officials say the partnership could help Washington combat Beijing’s influence in the Global South, and Microsoft pledges to prioritize security.

Microsoft AI Deal With G42 at Risk Over National Security Fears

In May, Microsoft Corp. and G42, the United Arab Emirates artificial intelligence firm, announced plans to spend $1 billion on projects in Kenya, including a massive geothermal-powered data center. The deal was negotiated with input from the US and UAE governments and coincided with a summit meeting in Washington between President Joe Biden and Kenyan President William Ruto.

Proponents of the Kenya project see it as a potential blueprint for similar government-business partnerships that could help the US expand its political and economic clout in the Global South — emerging markets in Africa and Central Asia where China is already firmly entrenched. Microsoft and G42 have pledged to team up on multiple projects in coming years, leveraging the UAE’s regional ties.