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Coca-Cola Invests $1.1 Billion in Joint Generative AI Venture with Microsoft

The Coca-Cola Company and Microsoft have inked a five-year pact aimed at harnessing artificial intelligence (AI) solutions across diverse business operations.

Coca-Cola Invests $1.1 Billion in Joint Generative AI Venture with Microsoft

With an investment of $1.1 billion in Microsoft Cloud, Coca-Cola is set to leverage its generative AI capabilities and cloud services. The collaboration, announced on April 23, will see the two giants team up to explore innovative AI applications across various business domains, utilizing Azure OpenAI Service and other cutting-edge technologies.

Moreover, they will embark on trials of Microsoft Copilot, a Microsoft 365 AI assistant, to gauge its potential in enhancing workplace efficiency.

As part of this initiative, Coca-Cola has transitioned all its applications to Microsoft Azure. Judson Althoff, Microsoft's Executive Vice President and Chief Commercial Officer, expressed optimism about the partnership, noting significant strides in driving AI transformation throughout Coca-Cola and its global network of bottlers.

Leveraging Azure OpenAI Service, Coca-Cola is currently delving into the realm of generative AI-powered digital assistants to enhance customer experiences, streamline operations, and boost overall efficiency.

The collaboration between Coca-Cola and Microsoft in the AI realm dates back to 2020, initially beginning with a $250 million deal. Neeraj Tolmare, Senior Vice President and Global Chief Information Officer of The Coca-Cola Company, emphasized how Microsoft's capabilities have expedited their AI adoption, adding incremental value to their enterprise.

In a related development, on April 9, Mustafa Suleyman, Microsoft's AI Executive Vice President and CEO, unveiled plans for a substantial, long-term investment in the United Kingdom. Suleyman highlighted the abundance of AI talent in the UK and outlined Microsoft AI's commitment to establishing a significant presence in the region, recruiting top AI scientists and engineers to build an AI hub.

The creation of this AI hub in the UK aims to propel advancements in AI language models and infrastructure, alongside developing tooling for foundational models. Additionally, it will foster collaboration with Microsoft's AI teams worldwide and its partners, including OpenAI.


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