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Coca-Cola signs $1.1 bln deal to use Microsoft cloud, AI services
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Coca-Cola signs $1.1 bln deal to use Microsoft cloud, AI services
Apr 23, 2024 7:00 AM

April 23 (Reuters) - Microsoft ( MSFT ) said on Tuesday

that Coca-Cola had signed a $1.1 billion five-year deal

to use its cloud computing and artificial intelligence services.

Under the agreement, Microsoft ( MSFT ) and Coca-Cola will "jointly

experiment" with Azure OpenAI. That service uses technology from

Microsoft ( MSFT )-backed startup and ChatGPT creator OpenAI to let

customers build chatbots and other AI services that run in

Microsoft's ( MSFT ) Azure cloud computing service.

Coca-Cola had in 2020 signed a five-year deal worth $250

million to use Microsoft's ( MSFT ) cloud and business software.

The two companies said Coca-Cola would test Microsoft's ( MSFT )

Copilot offerings to see how the tools improve productivity for

the beverage maker. Copilot is an AI assistant that can help

summarize lengthy email discussions and build slide decks for

business presentations, among its many functions.

The deal announced Wednesday also includes Coca-Cola

expanding its use of other, conventional Microsoft ( MSFT ) software such

as Dynamics 365, which is used by sales professionals and

competes against Salesforce ( CRM ).

Microsoft ( MSFT ) did not specify the financial breakdown of the

$1.1 billion Coca-Cola deal in terms of the dollar amount

attributable to AI services versus traditional cloud software.

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