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  • 🌍 Microsoft invests $1.5B in global AI development

🌍 Microsoft invests $1.5B in global AI development

🥱 Are investors losing interest in AI?

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Welcome to AI Tool Report!

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

  1. 🌍 Microsoft invests $1.5B in global AI development

  2. 🎥 Adobe to work with OpenAI?

  3. ↩️ UK does a U-turn on AI safety

  4. 🥱 Are investors losing interest in AI?

Read Time: 5 minutes


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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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  • 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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  • 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.

  • 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 AIare also believed to be behind the drop in investment.

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Until next time, Martin & Liam.

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