The tech giant Microsoft’s $1.5 billion investment in G42, an Emirati artificial intelligence company, is causing geopolitical ripples as the U.S. and China compete for A.I. superiority. The deal reflects a collaboration between the Biden administration and Microsoft to limit Beijing’s influence in the Gulf. G42 will be able to sell Microsoft services using powerful A.I. chips and will use Microsoft’s Azure cloud services in return. G42 has agreed to remove equipment from Chinese companies like Huawei from its systems, eliminating potential backdoors for Chinese intelligence agencies. The investment aims to bring an influential A.I. company into America’s orbit, given G42’s importance in the Gulf and beyond.
G42’s relationships with Chinese companies have raised concerns among U.S. officials, leading the company to take steps like divesting its stake in ByteDance. The deal between Microsoft and G42 is the result of dialogue between U.S. officials and tech executives on encouraging business transactions that deepen American interests in crucial regions and technologies. Microsoft’s President, Brad Smith, will join G42’s board as part of the agreement, allowing his company to audit G42’s technology usage. The collaboration is seen as beneficial for Microsoft, as it gains access to another promising A.I. company and a foothold in the Middle Eastern market.
Big-name donors have poured millions of dollars into key political races as the race for the White House tightens and control of Congress remains uncertain. While Democrats had a fund-raising lead early in the year, Republican campaigns and causes have received significant donations from wealthy backers. Notable donors include Ken Griffin, Timothy Mellon, Jeff Yass, Isaac and Laura Perlmutter, and Cameron and Tyler Winklevoss. These donors have supported various candidates and causes in the upcoming elections. Donors who contributed directly to presidential candidates last quarter are also facing a separate disclosure deadline.
Tesla’s outgoing head of policy and business development announced his departure amid the company’s announcement of roughly 14,000 layoffs, signaling a sector-wide slowdown in sales. Meanwhile, the Biden administration’s antitrust enforcers are reportedly preparing for a potential battle with Live Nation, the parent company of Ticketmaster, over alleged anticompetitive practices. Live Nation’s stock fell in premarket trading as the Justice Department is said to be considering a lawsuit against the company. Live Nation has faced complaints about high ticket prices and anticompetitive tactics, prompting increased scrutiny in recent years.
In other news, Andreessen Horowitz closed its latest investment funds at $7.2 billion, and International Paper agreed to acquire British packaging material maker DS Smith for $7.2 billion. Former TikTok employees revealed close links between the platform’s operations and its Chinese parent company, ByteDance. The Senate Finance Committee questioned Bank of America about payments linked to the private equity mogul Leon Black and Jeffrey Epstein. Mark Zuckerberg was dismissed as a defendant in lawsuits accusing Meta of addicting children to its services. Levi’s and makers of cowboy boots have benefitted from a sales boost from Beyoncé, and record-breaking college basketball player Caitlin Clark was selected first in the WNBA draft.
