Coca-Cola inks $1.1 billion cloud computing deal with Microsoft

Coca-cola deal with Microsoft: Microsoft revealed on Tuesday that Coca-Cola has finalised a $1.1 billion contract spanning five years to leverage its cloud computing and artificial intelligence (AI) services.

This new agreement between Microsoft and Coca-Cola will see them embark on collaborative experimentation with Azure OpenAI. This innovative service incorporates technology from OpenAI, a startup backed by Microsoft and the creator of ChatGPT, enabling customers to develop chatbots and other AI applications within Microsoft's Azure cloud platform.

Coca-Cola's previous deal with Microsoft, signed in 2020, amounted to $250 million over five years, focusing on utilising Microsoft's cloud and business software.

Part of the current agreement involves Coca-Cola exploring Microsoft's Copilot tools to gauge their effectiveness in enhancing productivity within the beverage giant. Copilot, functioning as an AI assistant, offers capabilities like summarising lengthy email threads and constructing business presentation slides.

Additionally, beyond AI services, the deal encompasses Coca-Cola's expanded utilisation of Microsoft's conventional software suite, including Dynamics 365. This software suite caters to sales professionals and stands as a competitor to Salesforce.

While Microsoft didn't divulge the precise financial breakdown of the $1.1 billion deal, it remains significant for both parties, indicating a deeper collaboration in harnessing cutting-edge technology to drive productivity and innovation.

(with Reuters inputs)