Microsoft this week announced a new collaboration with U.S. network giant AT&T to create new artificial intelligence and 5G solutions. In its confirmation, the company said it has entered an “extensive multiyear alliance” with AT&T and will also focus on new cloud technology.

Both companies say the partnership aims to improve “how people live and work today and in the future”.

As part of the deal, Microsoft Azure will become AT&T’s preferred cloud service for non-network applications. Microsoft cloud will also support the U.S. network as it consolidates its data centers. Microsoft 365 will be used by AT&T.

Microsoft will be able to access the company’s 5G network to develop edge-computing solutions. Microsoft CEO Satya Nadella says the collaboration will transform workplace productivity.

“AT&T is at the forefront of defining how advances in technology, including 5G and edge computing, will transform every aspect of work and life. The world’s leading companies run on our cloud, and we are delighted that AT&T chose Microsoft to accelerate its innovation. Together, we will apply the power of Azure and Microsoft 365 to transform the way AT&T’s workforce collaborates and to shape the future of media and communications for people everywhere.”

Partnership

Microsoft and AT&T will co-create collaboration, voice, IoT, AI, and networking products to the market. Both companies say they will also develop ways to create sustainability and boost communities through the use of technology.

“AT&T and Microsoft are among the most committed companies to fostering technology that serves people,” said John Donovan, CEO, AT&T Communications. “By working together on common efforts around 5G, the cloud, and AI, we will accelerate the speed of innovation and impact for our customers and our communities.”