Coca-Cola’s $1.1B Deal with Microsoft for Cloud & AI


Microsoft(NASDAQ:MSFT) disclosed on Tuesday a substantial 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.

Within this partnership, Microsoft and Coca-Cola will collaborate on leveraging Azure OpenAI, a service integrating technology from the Microsoft-backed startup and creator of ChatGPT, OpenAI. This platform enables customers to develop chatbots and various AI solutions hosted on Microsoft’s Azure cloud infrastructure.

Previously, in 2020, Coca-Cola committed to a five-year $250 million deal with Microsoft for cloud services and business software. The forthcoming collaboration will see Coca-Cola evaluating Microsoft’s Copilot tools, aimed at enhancing productivity within the beverage giant’s operations. Copilot functions as an AI assistant, capable of condensing lengthy email threads and constructing professional-grade slide presentations, among other tasks.

In addition to exploring AI innovations, the newly announced agreement encompasses an expansion of Coca-Cola’s deployment of Microsoft’s traditional software suite, including Dynamics 365. This software caters to sales professionals and competes directly with platforms like Salesforce(NYSE:CRM).

Although Microsoft did not delineate the precise financial breakdown of the $1.1 billion deal with Coca-Cola, it remains unclear how much of the sum pertains specifically to AI services as opposed to conventional cloud software offerings.

Featured Image: Freepik

Please See Disclaimer