Generative artificial intelligence (AI) is the main area that British telecommunications giant Vodafone Group Plc and U.S. technology giant Microsoft Corp have agreed to cooperate in over the next decade.
Vodafone said this on Tuesday.
Vodafone said that in addition to generative AI, the 10-year strategic partnership with Microsoft also aims to provide digital and cloud services to customers.
The move will help Vodafone to offer scaled digital platforms to more than 300 million businesses, public sector organisations, and consumers across Europe and Africa using Microsoft’s generative AI.
Under the partnership, the companies will collaborate to use Microsoft’s generative AI, hyperscale Vodafone’s managed Internet of Things (IoT) connectivity platform.
It will also develop new digital and financial services for businesses, and overhaul its global data centre cloud strategy.
Vodafone will invest $1.5 billion over the next 10 years in cloud and customer-focused AI services developed in conjunction with Microsoft.
In addition, Microsoft will use Vodafone’s fixed and mobile connectivity services.
Microsoft also plans to invest in Vodafone’s managed IoT connectivity platform, which will become a separate, standalone business by April 2024.
The new company is expected to drive growth in applications and expand the platform to connect more devices, vehicles, and machines.
Satya Nadella, chairman and chief executive of Microsoft, said: “This new generation of AI will unlock massive new opportunities for every organisation and every industry around the world.
“We are delighted that together with Vodafone we will apply the latest cloud and AI technology to enhance the customer experience of hundreds of millions of people and businesses across Africa and Europe.
“We will build new products and services, and accelerate the company’s transition to the cloud.’’ Nadella said.
Earlier in the day, IT major Cognizant Technology Solutions Corp announced that it is collaborating with Microsoft to launch an AI powered tool, Innovation Assistant that is built on Microsoft Azure OpenAI Service.
