Microsoft Corporation (NASDAQ:MSFT) has recently launched a venture fund to finance Element AI, a startup in Montreal co-founded by Yoshua Bengio, Ph.D., a University of Montreal Professor and a leading artificial intelligence (AI) expert.
AI Investment
Aside from financial assistance, the company will also grant Element AI access to its products and services. The companies, however, have both declined to disclose the size of the funding.
The move is part of the software giant’s broader strategy to become the leader in AI innovations. Element AI is the first of many startups Microsoft aims to fund under this new initiative.
Microsoft’s investment follows that of Alphabet Inc (NASDAQ:GOOGL) Google in Montreal Institute for Learning Algorithms, which is also spearheaded by Bengio, last month. Like Microsoft, Google is also carrying out its own efforts to become a leader in AI— especially in Montreal.
The city is home to some of the most advanced AI research and development (R&D) programs in the world. In September, four post-secondary institutions in Montreal have also received $213-million in funding from the government. The investment is primarily intended to support AI projects.
Element AI
Nagraj Kashyap, Microsoft Ventures Corporate Vice President (VP), believes that Element AI shares the company’s AI approach, making it an ideal investment for Microsoft as early as now.
Element AI seeks to raise more funds to cultivate its growth and develop new AI platforms. Specifically, by February, it hopes to have about 40 employees as it collaborates with the faculty at McGill University, University of Montreal, and University of Toronto.
“We’ll see opportunities nobody else can see because of the unique relationship will build with a bunch of partners,” reassured Jean Francois Gagne, Element AI Co-Founder and CEO.
According to Gagne, more and more AI experts from all over the world are now beginning to see the vast growth opportunities in Montreal. Given this and seemingly perfect timing, he is hopeful that Element AI is well-positioned to work on its growth prospects.
On Friday, Microsoft has closed at $62.17, up by 0.32%; while Alphabet has closed at $807.90, down by 0.19%.