Tech giant Microsoft (NASDAQ:MSFT) is investing $1.5 billion in G42, the leading artificial intelligence (AI) technology firm in the United Arab Emirates (UAE). This significant investment extends the ongoing partnership between the two entities, providing Microsoft with a minority stake in G42. Additionally, Brad Smith, Microsoft’s Vice Chair and President, will join G42’s board of directors.
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This move will strengthen the capabilities of both companies to provide AI solutions by leveraging Microsoft Azure across various industries and markets in the Middle East, Africa, and Central Asia. Reportedly, this investment came after G42 committed to reducing its presence in China.
MSFT’s Other AI Expansion Efforts
Notably, Microsoft is expanding its AI and cloud infrastructure globally.
Last week, MSFT announced it would invest $2.9 billion in increasing its hyperscale cloud computing and AI infrastructure in Japan. Prior to that, it announced $2.1 billion and $3.4 billion investments in Spain and Germany, respectively, focused on AI infrastructure.
Further, Microsoft teamed up with OpenAI and announced an enormous $100 billion data center venture.
What Is the Prediction for Microsoft Stock?
Microsoft stock has gained about 44% in one year. The company’s aggressive investments in AI and the infusion of the technology into its offerings drove its financials and share price.
Wall Street is bullish about MSFT stock. It has a Strong Buy consensus rating based on 33 Buys, one Hold, and one Sell. Analysts’ average price target on MSFT stock is $474.08, implying 14.61% upside potential from current levels.
