Abu Dhabi's G42 and Cisco sign initial agreement to explore AI investment

Companies also agree to co-develop cybersecurity solutions

Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi (centre), Peng Xiao, group chief executive of G42 (right), and Chuck Robbins, Cisco chief executive, sign a preliminary agreement to boost AI collaboration. Photo: G42Show less

UAE artificial intelligence company G42 and US technology firm Cisco have signed an initial agreement on Tuesday to explore AI infrastructure development across the public and private sectors just days ahead of US President Donald Trump's arrival in the Emirates.

They did not disclose the value of investments involved in the partnership. The deal will also include studying the co-development of AI-powered cybersecurity solutions, according to a statement from the two companies.

The agreement, signed by G42 group chief executive Peng Xiao and Cisco chief executive Chuck Robbins, was presented to Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi.

The G42-Cisco agreement comes amid Mr Trump's visit to the Middle East, during which technology-heavy deals, among others, are expected.

The agreement “reflects our shared interest in exploring how AI infrastructure and innovation can be scaled responsibly and securely across markets”, Mr Xiao said in a statement.

It is also in line with G42's strategy of expanding internationally, “identifying areas where our combined capabilities can support governments, enterprises and communities in harnessing the full potential of AI”, he added.

The UAE announced earlier this year that it would invest up to $1.4 trillion in the US over 10 years, and some details may emerge as a result of Mr Trump's visit, said Edward Bell, chief economist of Emirates NBD, Dubai's largest bank.

"There may also be deals around access to advanced semiconductors that will help the UAE achieve its AI ambitions," he told The National.

G42 has been at the forefront of the UAE’s AI growth strategy. In 2023, the company unveiled a new entity, Core42, that merged three of its key units – G42 Cloud, its research and development arm Inception, and ICT unit Injazat – to focus on delivering AI solutions and services on a national scale.

At the Gitex Global technology summit that year, G42 also announced a partnership with ChatGPT maker OpenAI, focusing on using its models in verticals where G42 operates, including financial services, energy, health care and public services.

More major partnerships with AI bellwethers were announced last year. In April, G42 received a $1.5 billion investment from Microsoft, which will help to further boost the company's global expansion plans and strengthen the UAE's position as a global technology hub.

In September, G42 partnered with global chip maker Nvidia to develop AI solutions aimed at enhancing the accuracy of weather forecasting globally, driving advanced climate solutions through Nvidia’s Earth-2 platform that can make climate and weather predictions with interactive, AI-augmented, high-resolution simulation.

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G42's moves are also in line with the UAE’s aim to become a global AI leader, continuing to tap into new-age technologies. The Emirates has attracted interest for its potential to become a global AI hub and has pivoted towards partnerships with technology majors from the West.

Last week, G42 was reported to be planning an expansion into the US, as the UAE continues to invest heavily in AI projects. Quoting corporate filings, the Financial Times reported on May 4 that G42 has established a US company to help boost its presence in the country.

This follows a March meeting between Sheikh Tahnoon bin Zayed, Deputy Ruler of Abu Dhabi and National Security Adviser, Mr Xiao and Meta Platforms founder Mark Zuckerberg. It came after Sheikh Tahnoon’s recent meetings with US tech leaders Elon Musk, Jeff Bezos, Jensen Huang and Satya Nadella, as well as high-ranking US officials from the current administration.

California-based Cisco, which provides network gear and technology services, is among a slew of major companies in the industry that have established a strong network in the UAE, alongside Microsoft and Google.

G42 and Cisco will focus on the areas in which AI holds significant potential.

“This collaboration aims to help customers build and secure AI-ready data centres and develop AI workloads effectively,” the statement said.

“AI is fundamentally changing our world, and to truly unlock its potential, we need to build a strong global ecosystem,” Mr Robbins said.