Microsoft and Walmart team up to compete with Amazon

Microsoft and Walmart are teaming up against Amazon in both technology and retail, writes The Verge. The companies entered into an agreement on a five-year strategic partnership.

Details

• As part of the agreement, Walmart will use Microsoft's cloud services, including Azure, as well as the company's various AI projects.
• Walmart is Amazon's biggest competitor in the retail space, and Microsoft competes with Jeff Bezos's company in cloud services. This confrontation is the "key reason" for the merger, explained Microsoft CEO Satya Nadella
• Microsoft is also discussing with Walmart the possibility of the retailer using the technology giant's developments in the field of offline shopping: a few days ago it became known that Microsoft is working on an analogue of Amazon Go (as Amazon's cashless stores are called). To do this, Microsoft even hired a computer vision specialist from Amazon.
• The deal is a "unique test" for Microsoft's big AI and cloud ambitions, according to The Verge.

Context

• $150 billion over the weekend Amazon founder Jeff Bezos, according to Bloomberg, reached , making him the richest person in modern history. The closest competitor on the list of billionaires is Microsoft founder Bill Gates with $95 billion. Three members of the Walton family, the current main owners of Walmart, are in the ranking in the second ten, each of them is estimated at $41-$43 billion.
• Amazon ranks second in the world in terms of capitalization, second only to Apple. Microsoft is in 4th place, Walmart is 19th.

The new alliance will certainly accelerate the introduction of new technologies in trade. And this means that checkout-free stores can become an everyday reality not only in the United States.

Artem Gubenko