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Microsoft to invest $1.5bn in Abu Dhabi AI group G42

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Microsoft has agreed to invest $1.5 billion in Abu Dhabi artificial intelligence group G42, the latest major investment in the technology that underlines deepening cooperation between the US and the United Arab Emirates.

The deal gives Microsoft a minority stake in G42, while chairman Brad Smith will also sit on the board. The deal comes after G42 cut ties with Chinese hardware suppliers, which have come under scrutiny from US lawmakers.

According to the Financial Times, the investment will strengthen Abu Dhabi’s position as a centre for artificial intelligence and is a sign of the oil-rich emirate’s tech ambitions. It also shows that the Gulf, long seen by many in Silicon Valley as an easy source of funding, is increasingly seen as a reliable technology partner.

Microsoft partners with the US and UAE governments

“Given the importance of the technology and how important it is to two countries and two governments, we have taken this first step in close cooperation with the UAE and US governments. We will take the next step and subsequent steps in close cooperation with them,” Smith said.

Asked if the Microsoft deal was a reward for cutting ties with China, G42 CEO Peng Xiao said: “I would focus on our decision to enter into this partnership with Microsoft to really develop our capabilities on a global scale. I would focus less on what we decided not to do,” he said.

$1 billion fund for AI developers

As part of the deal, G42 will use Microsoft’s Azure cloud computing platform as the backbone for developing and delivering its AI services to all of its customers, Xiao said.

Smith said the companies plan to work together to set up data centres in other countries at a later stage. They will also support a $1 billion fund for AI developers.

“Microsoft’s major investment is not something we do without a lot of thought, and this decision reflects the confidence our company has in the UAE as a country, G42 as a company, and Peng as its CEO,” Smith said.

G42’s links to Abu Dhabi’s ruling elite

Chaired by Sheikh Tahnun bin Zayed al-Nahyan, the UAE’s powerful national security adviser, G42 is at the centre of Abu Dhabi’s AI ambitions and is backed by the emirate’s sovereign wealth fund, Mubadala.

G42’s businesses range from data centres to healthcare, and it has already produced a model of the main Arabic language, called Jais.

Microsoft is positioning itself at the centre of the AI boom after the launch of OpenAI’s ChatGPT robot in November 2022, and says it sees the G42 investment as a launching pad for other regions.

“By coming together, I think we can very significantly accelerate the arrival of AI services in the global south,” Smith said.

Big tech giants’ AI mania

Microsoft has been the biggest spender during the investment frenzy of the past 18 months. Its investment in productive AI nearly quadrupled between 2022 and 2023, according to private market data provider PitchBook.

The majority of the $27 billion raised by AI startups last year came from big tech companies.

In addition to Microsoft’s $10bn investment in OpenAI, Amazon and Google struck multi-billion dollar deals with Anthropic, another San Francisco-based AI company.

MIDDLE EAST

Hamas approves Egypt’s new ceasefire proposal

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Hamas has reportedly agreed to a new Egyptian ceasefire plan that involves the gradual release of five hostages, including the last surviving American hostage.

According to Haaretz, citing the Qatar-based Al-Araby Al-Jadeed newspaper, a source familiar with the plan stated that Egypt presented a new ceasefire proposal on Monday. Under the proposal, Hamas would release five hostages in stages and provide information about the remaining hostages. In return, an immediate ceasefire would be implemented.

The report indicates that Egyptian mediators proposed broader discussions following the ceasefire, including a complete Israeli withdrawal from Gaza. The source emphasized that Egypt wants to pursue this process only with US guarantees.

According to the newspaper’s Egyptian sources, Hamas agreed to release a total of five hostages in exchange for a 50-day ceasefire, releasing one hostage every 10 days. This period would establish a basis for broader negotiations regarding the return of the remaining hostages and the withdrawal of the Israeli army from Gaza.

The newspaper claims that Hamas supports the plan, but it has not yet been formally presented to Israel. However, Israeli sources have stated that they are aware of the plan’s existence.

However, Israel is reportedly insisting on the release of 11 hostages, approximately half of the total number believed to be held by Hamas. An Israeli official speaking to Haaretz confirmed that this demand remains in place.

Hamas sources say they expect Israel’s position to change soon.

Egypt’s latest plan is based on a recent proposal by US Middle East Envoy Steve Witkoff, who participated in negotiations in Doha. Key elements of the plan include the release of five hostages, including an Israeli soldier and Edan Alexander, the last surviving American hostage, and providing Israel with information about the hostages’ health conditions. In return, Israel would allow humanitarian aid into Gaza and halt its attacks.

According to a Reuters report yesterday, a different proposal presented by Egypt last week stipulates that Hamas would release all remaining hostages at the end of negotiations, in exchange for a US-guaranteed timeline for a complete Israeli withdrawal from Gaza. Under this proposal, Hamas would release five hostages each week. Simultaneously, Israel would implement the second phase of the January ceasefire.

According to Reuters, the US and Hamas have approved this proposal, but Israel has not yet given a formal response.

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Netanyahu government moves to dismiss Attorney General

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The Israeli government unanimously declared “no confidence” in Attorney General Gali Baharav-Miara during its cabinet meeting on Sunday. This step officially initiates the process of Baharav-Miara’s dismissal, marking a first in the country’s history.

Justice Minister Yariv Levin accused the Attorney General of obstructing government policies and argued that cooperation had become impossible due to “long-standing fundamental disagreements” between them.

Baharav-Miara’s response was swift. Stating that the government was trying to place itself above the law, the Attorney General said, “They are seeking unlimited power; an unchecked administration is being targeted.”

The attempt to dismiss Baharav-Miara, along with the dismissal of Shin Bet Director Ronen Bar and discussions on judicial reform, is seen as a new crisis regarding the independence of the judiciary.

The process has been initiated despite many legally required steps. According to the current cabinet decision, the dismissal file must first be sent to a special five-member committee, and then the attorney general must be given the right to defend herself. However, this commission has not yet been formed.

It was leaked to the press that some ministers made sarcastic comments about Baharav-Miara during the cabinet meeting. Economy Minister Nir Barkat said, “She probably attended a meeting of another government,” while Environment Minister Idit Silman said, “She was a secretary in the previous government, now she acts like an opposition leader.”

Baharav-Miara, who did not attend the meeting, accused the government in her letter of trying to evade legal oversight, saying, “This initiative aims to weaken the judiciary and intimidate loyal public servants.”

Opposition leader Yair Lapid called the attempt to dismiss the Attorney General “illegal,” stating, “Netanyahu first wants to dismiss his investigator, and now his prosecutor. Gali Baharav-Miara is an honest and competent attorney general. That’s precisely why she’s a target. This is illegal, this is corruption. They will not succeed.”

National Unity Party leader Benny Gantz claimed that the government’s move was motivated by a law that would grant military service exemptions to ultra-Orthodox Jews: “Netanyahu wants an attorney general who will bypass the Supreme Court and disregard the reserve soldiers joining the army. We are all paying the price.”

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Shin Bet Director dismissed amid ‘Qatargate’ probe

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The Israeli government has unanimously dismissed Shin Bet Director Ronen Bar. Bar stated that the real intention behind his dismissal was to “continue ceasefire negotiations without reaching an agreement.” Referencing the Qatargate scandal investigated by Shin Bet, Bar said his dismissal “smells of foreign interests and an unprecedented conflict of interest.”

In a first for Israel, the director of Shin Bet, considered an independent institution, was dismissed by a cabinet decision. Bar did not attend the meeting where the dismissal was to be voted on, despite being summoned, but sent a letter to the ministers.

In his letter, Bar refuted Israeli Prime Minister Benjamin Netanyahu’s claim that there was a trust issue between them, which Netanyahu cited as the reason for the dismissal. Bar stated, “There has been intense and effective cooperation between Shin Bet under my leadership and the Prime Minister.”

Arguing that the Shin Bet Director should be loyal to the people, not the Prime Minister, Bar said, “Netanyahu could not support the reasons he put forward for my dismissal. Despite my request, no concrete examples were provided.”

Bar argued that Netanyahu’s insistence on the lack of trust between them was not a valid basis, but that his real intention was to continue ceasefire negotiations in Gaza without reaching an agreement.

Bar stated that Netanyahu’s decision to exclude him and Mossad Chief David Barnea from the ceasefire and prisoner exchange negotiations harmed the delegation and prevented any progress in the release of prisoners.

Bar added that Netanyahu is taking steps that will “weaken the country both internally and against its enemies.”

According to Bar, the decision is driven by “foreign interests and conflict of interest.”

Shin Bet Director Bar also referred to the “Qatargate” investigation in Israel, conducted by Shin Bet, regarding allegations that Netanyahu’s close advisors received money from Qatar through shell companies.

Bar stated, “Important investigative steps are being taken. Following the disruption of these steps by a sudden and hasty dismissal based on completely unfounded allegations, there is a smell of foreign interests and an unprecedented conflict of interest.”

He warned that the dismissal, initiated by Prime Minister Netanyahu, sends a dangerous message to those under investigation and could jeopardize the outcome of the investigation.

The government’s decision to dismiss the Shin Bet Director has been taken to the High Court.

The Movement for Quality Government requested the decision be halted in a petition to the High Court.

The decision also drew a swift reaction from the opposition. Yisrael Beytenu party leader Avigdor Liberman said, “By firing Shin Bet Director Ronen Bar, Netanyahu is doing exactly what our enemies dream of.”

The main opposition leader Yair Lapid says that the government dismissed Bar “for one reason only”: to stop the Qatargate investigation.

Lapid stated, “The opposition parties will jointly object to this reckless move to legitimize the infiltration of a hostile state into the prime minister’s office.”

The “Qatargate” discussions began with allegations that millions of dollars were taken from Qatar and transferred to Netanyahu’s election campaign.

These allegations turned into an investigation conducted by Shin Bet, with Prime Minister Netanyahu’s spokespeople Eliezer Feldstein and advisors Jonathan Urich and Srulik Einhorn in the defendant’s seat.

Israeli media reported that Netanyahu also received $15 million from Qatar in 2012 and $50 million in 2018.

It was reported that Feldstein was paid by an international company to support Qatar’s image, and Netanyahu’s advisors Urich and Einhorn also provided image consultancy for Qatar.

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