Coca-Cola signs $1.1 bln deal to use Microsoft cloud, AI services

Coca-Cola signed a $1.1 billion five-year deal with Microsoft to use the technology company’s cloud computing and artificial intelligence services.

Coca-Cola has been innovating with generative AI for nearly a year and has turned to Microsoft’s Azure OpenAI Service for its marketing, manufacturing and supply chain.

The beverage giant said it is exploring the use of AI to improve customer experiences, streamline operations, foster innovation, improve its competitive advantage, boost efficiency and discover growth opportunities.

Coca-Cola previously signed a five-year deal in 2020 for $250 million to use Microsoft’s cloud and business software.

“This new agreement builds on the success of Coca-Cola’s partnership strategy with Microsoft, showing our commitment to ongoing digital transformation,” John Murphy, president and chief financial officer at Coca-Cola, said in a statement.

Furthermore, the Coca-Cola-Microsoft deal highlights the increasing convergence of the consumer goods and technology sectors, signaling a broader trend of digital transformation across industries. This partnership not only underscores Coca-Cola’s commitment to staying at the forefront of innovation but also positions Microsoft as a key enabler of digital transformation for global enterprises. Together, Coca-Cola and Microsoft are poised to unlock new opportunities, drive sustainable growth, and shape the future of consumer experiences through the seamless integration of cloud computing and AI technologies.
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