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    Microsoft’s approach to AI has evolved significantly under the leadership of CEO Satya Nadella. Since taking over the helm in 2014, Nadella has prioritized mobile and cloud computing, with AI as a core component of Microsoft’s strategy, and by 2018, he emphasized that AI would shape all future initiatives at Microsoft. This vision led to strategic investments, such as in an AI supercomputer, and key partnerships, most notably with OpenAI.

    In 2019, Microsoft invested $1bn in OpenAI, followed by an additional $10bn in January 2023, further signaling Microsoft’s deep commitment to AI development. In 2021, Microsoft made its second-largest acquisition when it purchased Nuance Communications for $20bn. The acquisition further strengthened Microsoft’s capabilities in natural language processing and speech recognition.

    Microsoft’s AI journey has seen both successes and setbacks, from the infamous Clippy assistant in 1996 to the controversial Tay chatbot in 2016. Learning from these experiences, Microsoft established a Responsible AI division to ensure ethical AI development. According to David Carmona, VP of Microsoft, AI is not just a product but a strategy that permeates all aspects of the company, driving innovation across its entire product line.

    2024 AI-related highlights

    • Takes a minor stake ($16m) in Mistral, a French AI startup, Mistral Large made available on Microsoft’s Azure platform (Feb 2024)
    • Mustafa Suleyman, who co-founded Google’s Deepmind and Inflection AI, was named Chief of Microsoft AI (March 2024)
    • Microsoft and NVIDIA expand their collaboration to integrate the latest NVIDIA technologies across the Microsoft product suite (March 2024)
    • Signed Coca-Cola to a 5-year, $1.1bn contract with Azure for AI and cloud computing services (April 2024)
    • Integration of GPT-4o into Copilot announced (May 2024).
    • Published inaugural Responsible AI Transparency Report outlining the development and deployment of generative AI applications (May 2024)
    • Introduces Copilot + PC., dubbed as Windows PC devices that are optimized to AI workloads locally (May 2024)
    • Partners with Lumen to expand AI infrastructure, enhancing network capacity and accelerating digital transformation. (Jul 2024)
    • Partners with Mass General Brigham and UW to advance AI in medical imaging, enhancing radiology workflows. (Jul 2024)
    • Announces partnership with Swiss Re to advance AI innovation, enhancing productivity, efficiency, and data security through Copilot’s rollout. (Sept 2024)