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Tuesday’s top story: Microsoft has invested $1.5B in UAE AI company—G42—to co-deliver innovative AI solutions, positioning both companies at the forefront of global AI development.
🌤️ This Morning on AI Tool Report
🌍 Microsoft invests $1.5B in global AI development
🎥 Adobe to work with OpenAI?
↩️ UK does a U-turn on AI safety
🥱 Are investors losing interest in AI?
Read Time: 5 minutes
FINANCE
INVESTMENTS
Our Report: Microsoft has announced a $1.5B strategic investment in G42—an AI company based in the United Arab Emirates—to co-deliver AI solutions, positioning both companies at the forefront of global AI development, and making AI accessible and beneficial to a wider audience.
🔑 Key Points:
G42 will migrate to Microsoft Azure, and Microsoft's investment will give them a minority stake in the company, with Microsoft VP—Brad Smith—joining its board.
The collaboration will deliver AI solutions and bring digital infrastructure to countries in the Middle East, Central Asia, and Africa, fostering skilled AI workforces.
Microsoft and G42 will establish a $1B fund to cultivate a skilled AI workforce, boosting AI skills and driving innovation across the UAE and other regions.
🤨 Why you should care: Although Microsoft has invested over $11B to advance AI and digital infrastructure in countries like Japan, the UK, Germany, and Spain, this marks the first commercial investment in a company.
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AI VIDEO
Adobe is integrating generative AI tools into its video editing platform—Premiere Pro—powered by its model, Firefly, and third-party integrations with OpenAI and others.
The features will allow users to create videos, generate missing scene elements, remove distractions, and extend the length of clips using text prompts.
This follows the launch of AI video tools (like Sora), and because they’re allowing third-party app integration, this could position Adobe at the forefront of innovation.
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REGULATIONS
The UK is drafting new legislation to regulate AI models, in contrast to the UK government's previous light-touch approach designed to stop stifling innovation.
Currently, the UK doesn’t have policies that prevent the release of AI models that haven’t been safety tested, or allow them to penalize companies for violating safety standards.
Companies could have to share code and safety tests with the government, although it’s unknown how new laws will work with the AI Safety Institutes' existing safety tests.
INVESTMENTS
A report from Stanford’s Institute for Human-Centered AI found that global investment in AI dropped to $189.2B last year, a 20% decline compared to 2022.
Experts from Gartner believe that “huge investments have slowed and the market is more influenced by tech companies that’ll utilize existing AI products to build new offerings.”
Slower-than-expected growth, recognition of AI’s challenges, and “the rapid rise and fall of certain startups in AI” are also believed to be behind the drop in investment.
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