So, Cruise will get the much-needed funds to conduct research and (possibly discounted) access to Microsoft\u2019s cloud computing resources and move closer toward its goal of launching a purpose-built self-driving car.<\/p>\n
But in the long run, Microsoft stands to gain more from the deal. Not only will it get two very lucrative customers for its cloud business (Azure will also become GM\u2019s preferred cloud provider, also per the announcement), but when seen in the broader context of Microsoft\u2019s self-driving car strategy, \u201cCruise\u2019s deep industry expertise\u201d will possibly give Microsoft a solid foothold into the future of the still-volatile self-driving car industry.<\/p>\n
At a time where most major tech companies are interested in acquiring self-driving car startups or launch their own initiatives, Microsoft\u2019s hands-off approach can eventually turn it into an industry leader.<\/p>\n Self-driving cars can be viewed as a specialized case of <\/span>artificial intelligence business<\/a>. Every company running on AI algorithms\u2014namely <\/span>machine learning<\/a>\u2014must bring together a few key pieces to have a viable business model:<\/p>\n Microsoft already has a solid AI stack and a full range of products that fit in this category. For instance, the company\u2019s <\/span>computer vision<\/a> service runs on machine learning models developed by the company\u2019s engineers. The models were trained using the company\u2019s vast store of image data. As customers use the AI service, they generate more data and labels to further enhance the machine learning models. Finally, Microsoft\u2019s Azure cloud has specialized hardware to both train the models and deliver them at scale and in a cost-efficient manner.<\/p>\n Many companies use Microsoft\u2019s Cognitive Services APIs to integrate AI capabilities into their applications.<\/p>\n Microsoft can also engage in any kind of venture that builds on this AI stack, such as launching its own end-to-end computer vision applications or hosting advanced natural language processing platforms such as <\/span>OpenAI\u2019s GPT-3<\/a>.<\/p>\n When it comes to self-driving cars, however, a few new components are added to the mix:<\/p>\n Self-driving cars introduce new manufacturing and legal challenges that would challenge a company that is mainly in the software business. There are a few ways companies overcome these challenges.<\/p>\n![\"Microsoft](\"https:\/\/i1.wp.com\/bdtechtalks.com\/wp-content\/uploads\/2021\/01\/Microsoft-cruise-gm.jpg?resize=696%2C348&ssl=1\")
<\/a><\/figure>\nSelf-driving cars from the AI business perspective<\/h2>\n
\n
\n
How does Microsoft\u2019s self-driving car strategy fare against others<\/h2>\n