British telecommunications company Vodafone and the world’s largest software company Microsoft have entered into a far-reaching strategic partnership in the field of artificial intelligence (AI) applications. The agreement has a term of ten years, the two companies announced on Tuesday.
As part of the collaboration, future technologies such as the Internet of Things and cloud services will be extended with AI functions. This will provide digital platforms and services to more than 300 million businesses, public service providers and consumers in Europe and Africa.
Using Microsoft’s generative AI – especially AI chatbots – the aim is to improve support for Vodafone customers. AI is also intended to help deliver Vodafone’s global platform for the Internet of Things on a large scale as a so-called hyperscaler. The partnership will also develop digital and financial services for businesses, especially for small and medium-sized businesses in Europe and Africa.
Billion investment planned
Vodafone said it would invest $1.5 billion (1.4 billion euros) over the next ten years in services developed together with Microsoft. But the deal doesn’t just go one way: according to the announcement, the American company will use Vodafone’s fixed and mobile services.
Microsoft continues to plan to invest in Vodafone’s Internet of Things platform, the companies said. This platform must become a separate, independent company by April 2024. “The new company will attract new partners and customers, drive application growth and expand the platform to connect more devices, vehicles and machines.”
Microsoft is currently considered the world’s largest provider of AI services, also because the company secured early access to OpenAI’s technology with billions of investments. The company’s investments in artificial intelligence have recently boosted its stock price. The software company is now in a race with Apple to become the most valuable company in the world.
The British Vodafone Group is competing with its competitors Telefónica and Orange for the position of the second largest telecommunications company in Europe. The European market leader is Magenta parent company Deutsche Telekom.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
