Microsoft Corporation (MSFT) Announces Collaboration With Innovative Chinese Tech Company

While Microsoft Corporation (NASDAQ:MSFT) has pulled back on a number of its hardware efforts, that doesn’t mean that the company is throwing in the towel on innovation just yet. The company has just signed up for an intriguing collaboration on a number of new initiatives with an innovative Chinese tech company.

Techcrunch has the details on Microsoft’s plans with Xiaomi.

After Microsoft signed a deal to test Windows 10 on Xiaomi devices in 2015 and then Xiaomi bought a trove of patents to help run other Microsoft services on its devices in 2016, today the two companies announced another chapter in its collaboration. Xiaomi and Microsoft have signed a Strategic Framework Memorandum of Understanding (MoU) to work more closely in the areas of cloud computing, AI (including Microsoft’s Cortana business) and hardware.

Xiaomi has its sights set on an IPO that could potentially value the company at $100 billion. Its general strategy to date has been to focus on mobile phones and devices in the Asia Pacific market, but the deal with Microsoft could point to bigger ambitions for the company.

On the Microsoft side of the ledger, the company notes that the partnership will help Xiaomi “develop more cutting-edge technology for everyone around the world.”

Microsoft Corporation shares rose $0.44 (+0.47%) in premarket trading Monday. Year-to-date, MSFT has gained 10.48%, versus a 2.94% rise in the benchmark S&P 500 index during the same period.

MSFT currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #1 of 65 stocks in the Software – Application category.