U.S. Microsoft announced on July 2 (local time) the establishment of a new organization, “Microsoft Frontier Company,” to support AI implementation by stationing AI engineers at client companies. The investment will be $2.5 billion (approximately ¥400 billion), with an organization of roughly 6,000 people centered on existing engineering divisions and FDE (Forward Deployed Engineering) teams.
Microsoft Frontier Company will operate as an internal organization rather than an independent corporation, with its own management structure and financial accountability. The company said it had achieved results through collaborations with customers such as Unilever and Novo Nordisk, and indicated that it would expand the business in cooperation with partner companies such as Accenture and PwC. It also emphasized a policy of not using customer data or know-how to train models.
Microsoft explained that this initiative was an evolution of the existing FDE framework. FDE refers to an approach in which engineers from an AI company are stationed at a client company and provide consistent support, from the design to the operation of AI systems, according to its business processes.
U.S. OpenAI also announced in May the establishment of a new company, “OpenAI Deployment Company,” specializing in AI implementation. On June 30, AWS, a unit of U.S. Amazon,announced that it would establish a dedicated FDE organization and invest $1 billion, and competition over AI implementation support services is intensifying.
