The deal enlarges America's AI tent and sidelines China from the UAE market while placing Microsoft's AI business at the heart of American geopolitical interests and policy.
G42 will strip equipment made by China-based Huawei from its systems. G42 separately divested from Chinese companies, including TikTok owner Bytedance, in February under U.S. pressure.
The deal showcases the benefits companies and governments can reap if they side with Washington over Beijing on AI development and governance.
The deal is a dividend on a 20-year investment by Microsoft in better government relations at home and abroad, working to avoid regulatory tangles and fines.
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