telecommunications
Vodafone and Microsoft agree on AI partnership
Vodafone wants to invest 1.37 billion euros over the next ten years in services that would be developed together with Microsoft. photo
© Federico Gambarini/dpa
Microsoft shares have skyrocketed in recent months in anticipation of good business with AI applications. Now the first major orders are rolling in.
The British telecommunications company Vodafone and the world’s largest software company Microsoft has entered into a far-reaching strategic partnership for artificial intelligence (AI) applications. The agreement has a term of ten years, the two companies said.
As part of the cooperation, future technologies such as the Internet of Things and cloud services will be expanded to include AI functions. This will provide digital platforms and services to more than 300 million companies, public service organizations and consumers in Europe and Africa.
With the help of Microsoft’s generative AI – especially AI chatbots – they want to improve the support of Vodafone customers. AI is also intended to help provide 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 companies, particularly for small and medium-sized companies across Europe and Africa.
Deal doesn’t just go one way
Vodafone said it would invest $1.5 billion (1.37 billion euros) over the next ten years in services developed together with Microsoft. But the deal doesn’t just go in one direction: According to the announcement, Microsoft will use Vodafone’s landline and mobile services.
Microsoft continues to intend to invest in Vodafone’s Internet of Things platform, the companies said. This platform should 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.”
The British Vodafone Group, together with its competitors Telefónica and Orange, is fighting for the position of the second largest telecommunications company in Europe. The European market leader is Deutsche Telekom.