Microsoft Corporation (MSFT) Betting AI Conversations Will Be Big Business

Microsoft Corporation (NASDAQ:MSFT) is expecting big things from its artificial intelligence initiative, and it has just taken another step towards insuring that its goals become a reality. The tech giant has just scooped up a start-up that has an innovative approach to using machine learning.

CNBC has the details on the new member of the Microsoft family.

Microsoft has bought Semantic Machines, an artificial intelligence start-up, as it looks to boost its efforts in developing conversational AI.

Berkeley, California-based Semantic’s approach to AI is using machine learning to add context to conversations with chatbots. This means taking information received by AI and applying it to future dialogue.

Semantic’s speech recognition team has previously been tasked with providing leadership for automatic speech recognition development for Apple’s Siri. Financial terms of the deal were not disclosed, but Microsoft AI and Research CTO David Ku offered up some insight into the company’s acquisition in a blog post.

“With the acquisition of Semantic Machines, we will establish a conversational AI center of excellence in Berkeley to push forward the boundaries of what is possible in language interfaces,” Ku wrote.

Microsoft Corporation shares were trading at $97.79 per share on Monday morning, up $1.43 (+1.48%). Year-to-date, MSFT has gained 15.36%, versus a 2.83% 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 66 stocks in the Software – Application category.