Microsoft (MSFT) Invests $1.5B in G42 to Enhance AI Adoption – Yahoo Finance

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Microsoft MSFT announced that it has invested $1.5 billion in G42, a leading UAE-based artificial intelligence (AI) technology holding company. This investment is set to strengthen the collaboration between the two companies in bringing MSFT’s latest AI technologies and skilling initiatives to the UAE and other countries worldwide.

As part of this expanded partnership, Brad Smith, Microsoft’s vice chair and president, will join G42’s board of directors. The collaboration aims to empower organizations of all sizes in new markets to harness the benefits of AI and cloud computing while adhering to world-leading standards in safety and security.

G42 will run its AI applications and services on Microsoft Azure and partner to deliver advanced AI solutions to global public sector clients and large enterprises. The companies will also work together to bring advanced AI and digital infrastructure to countries in the Middle East, Central Asia and Africa, providing equitable access to services addressing important governmental and business concerns while ensuring the highest standards of security and privacy.

The partnership will support the development of a skilled and diverse AI workforce and talent pool, with a $1 billion investment in a development fund for developers. It is backed by a first-of-its-kind agreement to apply world-class best practices for the secure, trusted and responsible development and deployment of AI, in close coordination with the UAE and U.S. governments.

The collaboration between G42 and Microsoft has expanded through several milestones over the past year, including joint plans for AI solutions, sovereign cloud offerings and the availability of G42’s Jais Arabic Large Language Model on MSFT’s Azure AI Cloud Model-as-a-Service offering.

Microsoft Corporation Price and Consensus

Microsoft Corporation Price and Consensus

Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote


Tech Giants Double Down on Generative AI Capabilities

In the booming generative AI landscape, major tech companies are racing to bolster their offerings and stake their claim. A Fortune Business Insights report shows that the global generative AI market size is expected to reach $667.96 billion by 2030, seeing a CAGR of 47.5% between 2023 and 2030.

Microsoft has tightly integrated OpenAI’s GPT-4 language model into its Bing search engine and Edge browser, delivering a ChatGPT-like experience to users. The Azure OpenAI Service enables developers to easily incorporate large language models and generative AI into applications across various use cases.

This Zacks Rank #3 (Hold) company has launched copilot templates that allow retailers to build personalized shopping experiences and streamline store operations using generative AI. Notably, Microsoft and OpenAI are collaborating on an advanced data center project to meet the immense computational demands of complex generative AI tasks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Despite these cutting-edge AI moves, shares of MSFT have gained 10% year to date compared with the broader Zacks Computer and Technology sector’s 11.1% growth amid intensifying competition from Amazon AMZN and Alphabet GOOGL-owned Google as they are all making aggressive moves to expand their generative AI capabilities.

Meanwhile, Amazon Web Services (“AWS”) is leveraging AMZN’s Bedrock, which provides access to high-performance foundation models from AI firms through an API. A new partnership with NVIDIA NVDA will bring the powerful Blackwell GPU platform to AWS, accelerating inference for massive language models with trillions of parameters. This will supercharge resource-intensive generative AI workloads on AWS.

Alphabet’s Google continues to power its various products with its most advanced and powerful large language model (LLM), namely Gemini. Google introduced various open-source tools to support generative AI projects and infrastructure. The new tools include the likes of MaxDiffusion, a collection of reference implementations of various diffusion models; JetStream, a new engine to run generative AI models; MaxText, a collection of text-generating AI models targeting tensor processing units; and NVIDIA’s GPUs in the cloud.

Not to be outdone, Google has been swiftly iterating its language models, releasing the Multitask Unified Model and Pathways Language Model to bolster its search capabilities with generative AI. Google Cloud is integrating generative AI into its enterprise offerings, equipping developers with tools and services to build innovative applications.

As generative AI rapidly advances, these tech titans are jockeying for position, investing heavily in cutting-edge models, computational resources and developer platforms to lead the next wave of AI innovation.

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