Microsoft creates new business unit to help large enterprises set up tailored AI solutions

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A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File PhotoMicrosoft has announced the formation of a new business unit responsible for helping its large customers deploy customised AI solutions.The new unit called Microsoft Frontier Co, will comprise over 6,000 employees, including engineering experts, with a backing of $2.5 billion from the Windows-maker. The enterprise AI deployments will be powered by Microsoft’s existing AI tools.In recent months, several tech giants have moved to roll out their own AI ventures that rely heavily on forward-deployed engineers (FDEs). However, Microsoft could have a significant advantage over them given its  existing client base. The company has already deployed a number of FDEs to Fortune 500 companies via partnerships with the London Stock Exchange Group, Unilever, Land O’Lakes, Accenture, and others.“[Microsoft Frontier] goes beyond what has been labeled as Forward-Deployed Engineering, and will be the largest, most capable, outcome-driven engineering organization in the industry,” Microsoft’s Commercial Business CEO Judson Althoff was quoted as saying by TechCrunch. A few days earlier, Amazon Web Services embraced the FDE model and announced an internal commitment of $1 billion for its own AI deployment venture. AI giants OpenAI and Anthropic have also launched joint ventures along similar lines, although those efforts also involve outside capital from private equity firms.