Coca-Cola to Invest $1.1 Billion in Microsoft’s Cloud and AI Services

Microsoft and Coca-Cola have entered a five-year strategic partnership valued at $1.1 billion, aimed at integrating cutting-edge technologies, including generative AI, across all areas of the beverage maker’s business.

The companies will jointly experiment with technologies such as Microsoft Cloud and Azure OpenAI Service to develop generative AI use cases in various Coca-Cola business functions, including marketing, production, and supply chain. They also plan to test how Copilot for Microsoft 365 can enhance employee productivity.

“Through our partnership, we have made significant progress in accelerating AI transformation across Coca-Cola and its network of independent bottlers,” said Microsoft Executive Vice President Judson Althoff.

Coca-Cola has been using Azure OpenAI Service for about a year to optimize various areas of operation. The company is currently exploring the use of generative AI-based digital assistants to improve customer service quality, optimize operations, drive innovation, and increase efficiency.

“Our partnership with Microsoft is growing exponentially: from the $250 million agreement we initially announced in 2020 to $1.1 billion today,” said The Coca-Cola Company President and CFO John Murphy.

In April, Microsoft announced a $1.5 billion investment in the UAE’s AI industry.