Microsoft Acquires Artificial-Intelligence Startup Maluuba
January 13 2017 - 3:49PM
Dow Jones News
By Jay Greene
Microsoft Corp. on Friday said it acquired a Montreal startup
that focuses on artificial intelligence, giving the software giant
another tool as it competes against rivals such as Alphabet Inc.'s
Google and Salesforce.com Inc.
The startup, Maluuba, was launched in 2010 by students at the
University of Waterloo. It creates programs that use
natural-language processing, which helps computers understand
dialogue and develop reasoning capabilities in areas of research
known as deep learning and reinforcement learning.
Microsoft and Maluuba declin
With Maluuba's software, for example, workers at large
organizations can type a request to locate an employee with
specific knowledge, such as a tax-law expert. Maluuba's
natural-language technology would then sift through documents,
emails and corporate directories to pinpoint the best person,
according to a blog post from Harry Shum, Microsoft's executive
vice president in charge of artificial intelligence.
Microsoft and Maluuba declined to disclose the purchase
price
Like many competitors, Microsoft is racing to beef up its
artificial-intelligence capabilities. Last April, Salesforce bought
deep-learning startup MetaMind, and in August Apple Inc. picked up
machine-learning specialist Turi Inc.
Last September, Microsoft created an artificial-intelligence
division with 5,000 employees, putting Mr. Shum in charge. The
division includes both product managers and researchers, a pairing
Microsoft hopes will accelerate the rollout of
artificial-intelligence offerings.
Maluuba's technology has been used in smartphones and
televisions from brands such as Samsung Electronics Co. and LG
Electronics Inc. A year ago, at the CES trade show in Las Vegas,
the company worked with Qualcomm Inc. in a demo that let drivers
communicate with an intelligent voice interface in a Maserati
car.
At that time, Maluuba also raised $9 million from investors
including Emerillon Capital and Nautilus Ventures to expand
research and development. Maluuba has raised $11 million in total,
according to co-founder Sam Pasupalak.
Ever since Satya Nadella became chief executive nearly three
years ago, Microsoft has been on an acquisition tear. It has picked
up more than three dozen companies since, and elevated executives
from acquired companies to senior posts to guide Microsoft in
emerging businesses.
Microsoft intends to retain all 50 Maluuba employees, including
Mr. Pasupalak and co-founder Kaheer Suleman, who will join
Microsoft's artificial-intelligence group. And Microsoft said
Yoshua Bengio, the head of the Montreal Institute for Learning
Algorithms and an adviser to Maluuba, will continue in that
capacity. Mr. Shum described Mr. Bengio as "one of the world's
foremost experts in deep learning."
Write to Jay Greene at Jay.Greene@wsj.com
(END) Dow Jones Newswires
January 13, 2017 15:34 ET (20:34 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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