Microsoft's decision to invest $1.5 billion for a stake in G42 was a welcomed development as the deal points to an American company offering an alternative to Chinese tech-giant Huawei, a White House official said on Monday.In April, Microsoft announced the deal with G42, a United Arab Emirates -based artificial intelligence firm, for what the companies said was 'to co-innovate and deliver advanced AI solutions with Microsoft Azure' across the Middle East, Central Asia and Africa.
However, the company has denied in the past that it would provide 'back door' access to data on its platforms to Beijing, The Wall Street Journal previously reported.Reuters reported that the Middle East is emerging as a battleground for the U.S. and China in their tech rivalry amid the emergence of AI as a force in global technology.While announcing the deal with G42 in April, Microsoft said the companies were committed to adhering to U.S. and international trade agreements.