Dividends and Microsoft to buy AI firm Nuance Communications

In one of the Terminators movie, one of the scientists said a line to the effect, when we discovered the arm we learnt so much to move the bar years ahead. In the movie, the Terminator was trying to destroy the firm because robots took over from humans.

We all have an idea that Artificial Intelligence or AI is going to play a larger role in the corporate life, but how does AI become everywhere. The answer is companies such as Microsoft which is the backbone of corporate America adds it.

In an article by Chavi Mehta and Krystal Hu of Reuters, Microsoft is buying Nuance Communications for $16 billion as it builds out its cloud strategy for health care.

If you have been to a Doctors office, they seem to have a lot of paperwork as opposed to digital solutions. Nuance Communications is helping the medical system become less dependent on paper. Microsoft CEO Satya Nadella said, Nuance provides the AI layer at the health care point of delivery. AI is technology’s most important priority and health care is its more urgent application.

Microsoft is buying Nuance at $56 a share. The company is based in Burlington, Mass and reported revenue of $1.5 billion through operations in 28 countries. It is expected Mark Benjamin will remain the CEO of Nuance and will report to Scott Guthrie, EVP of Cloud and AI at Microsoft.

Linking to dividend paying stocks, the more profitable stocks often buy smaller companies to add muscle to their operations. Ideally, the corporate culture and operations fit with the bigger company to be a success, but time will tell. However, likely Microsoft is buying talent and will find out if the medical system can positioned for more AI sooner than later, to grow revenues.

There are more questions than answers, till the next time – to raising questions.

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