Microsoft expands Coca-Cola partnership to the tune of $1.1B for Azure and AI Services

Beverage bottling jumps into AI

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Microsoft and Coca-Cola have just inked a new five-year deal where the two will partner up to the tune of $1.1B for cloud and generative artificial intelligently led services.

According to a press release from Microsoft, the strategic partnership between the two companies includes a $1.1B commitment from Coco-Cola to Microsoft who will in turn provide the technological underpinnings for the beverage company’s cloud and AI future.

“Through our long-term partnership, we have made significant progress to accelerate system-wide AI Transformation across The Coca-Cola Company and its network of independent bottlers worldwide,” said “We are proud to support Coca-Cola as it continues to embrace the era of AI and looks to solutions like Azure OpenAI Service and Copilot for Microsoft 365 to drive innovation across every area of its business.”

Judson Althoff, executive vice president and chief commercial officer at Microsoft.

The new $1.1B deal comes as an expansion of an initial $250M investment Coca-Cola placed with Microsoft back in 2020. Coca-Cola has been using Microsoft’s Azure cloud services for over the past couple of years and began utilizing the company’s AI platforms last year to help reimagine its own marketing, manufacturing processes and supply chain protocols among other tasks.

Today’s announcement will help accelerate Coca-Cola’s exploration of Azure OpenAI Services to aid in “customer service experiences, streamline operations, foster innovation, gain a competitive advantage, boost efficiency, and uncover new growth opportunities”, according to Microsoft.

While it’s still unclear how much Microsoft has invested into AI over the years, deals such as this $1.1B with Coca-Cola helped to justify the company’s bullishness on the technology and its continued exploration of the sector.

More about the topics: Microsoft Azure