Microsoft (NASDAQ:MSFT)announced on Tuesday a significant agreement with Coca-Cola(NYSE:KO), valued at $1.1 billion over five years, for the utilization of its cloud computing and artificial intelligence offerings.
In addition to leveraging Azure OpenAI, a service integrating technology from the Microsoft-backed startup and creator of ChatGPT, OpenAI, Microsoft and Coca-Cola will collaborate on experimental initiatives. This partnership aims to empower customers to develop chatbots and various AI solutions hosted on Microsoft’s Azure cloud infrastructure.
Coca-Cola’s commitment to Microsoft’s cloud services dates back to 2020, with a previous five-year deal worth $250 million.
As part of the new agreement, Coca-Cola will explore Microsoft’s Copilot offerings to enhance productivity. Copilot, an AI assistant, aids in summarizing lengthy email threads and creating professional-grade presentations.
Moreover, the deal encompasses an expansion of Coca-Cola’s usage of Microsoft’s conventional software suite, including Dynamics 365, utilized by sales professionals and competing against Salesforce(NYSE:CRM).
While Microsoft did not disclose the financial breakdown of the $1.1 billion Coca-Cola deal, it underscores the growing importance of AI and cloud technologies in modern business operations.
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