Vodafone
and
Microsoft
have announced a 10-year partnership that aims to bring generative AI, digital, enterprise, and
cloud
services to over 300 million businesses and consumers in Europe and Africa. As part of the agreement, Vodafone will invest $1.5 billion in customer-focused
AI
developed with Microsoft's Azure OpenAI and Copilot technologies. The company also plans to replace physical data centres with cheaper and scalable Azure cloud services.
In return, Microsoft will become an equity investor in Vodafone's managed
IoT
platform, which will be spun out as a standalone business by April.
Microsoft will also assist in scaling Vodafone's mobile financial platform in Africa, a report by news agency Reuters said.
What Microsoft CEO Satya Nadella said
Microsoft CEO Satya Nadella also announced the development on X (formerly Twitter).
"We're delighted to partner with @VodafoneGroup to apply the latest cloud and AI technology to enhance the customer experience for hundreds of millions of people and businesses across Africa and Europe," he said.
The collaboration between Vodafone and Microsoft combines their respective strengths in AI, IoT, and financial services to create innovative solutions for businesses across Europe and Africa.
Vodafone's chief executive, Margherita Della Valle, sees this partnership as an opportunity to help businesses digitise. She says that the addressable market for this venture is worth 140 billion euros. Della Valle signed the deal with Microsoft's Chairman and CEO, Satya Nadella, and stated that it will "accelerate the digital transformation of our business customers, particularly small and medium-sized companies."
Vodafone's M-PESA mobile money platform, which operates in African countries such as Kenya, Tanzania, and South Africa, aligns with Microsoft's goals in the region, such as building digital literacy. Microsoft aims to bring generative AI capabilities to assist customers in making more intelligent financial decisions.
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