Microsoft (MSFT, Financials) is setting up a new company to help large businesses make better use of AI after many struggled to turn early spending into clear returns.
The new unit, called Microsoft Frontier Company, will begin with $2.5 billion in funding. Its first customers include Unilever and Novo Nordisk.
The company will help clients choose and combine AI tools from Microsoft and other providers, then connect those tools with their own internal data. The goal is to give businesses more flexibility instead of tying them to one model or vendor.
Microsoft said customers will keep the results of that work. That point matters as more companies worry about giving outside AI labs too much access to valuable business knowledge.
The move comes as large companies shift toward using a mix of AI models, including open-source options. Microsoft also acknowledged that it learned from its own Copilot rollout, which was initially tied too closely to OpenAI models.
Investors will watch whether the new firm can help Microsoft capture more enterprise AI spending as companies demand lower costs, stronger control and clearer returns.