Microsoft launches new AI implementation unit with $2.5 billion investment

Microsoft is creating a new subsidiary, Microsoft Frontier Co., to help clients adopt artificial intelligence more effectively. The company said the unit will include about 6,000 employees, including engineers, technical consultants, support staff, and salespeople with industry experience. The new effort is centered on forward deployed engineering, a model in which staff work closely with customers onsite or in direct support roles. Rodrigo Kede Lima, who has led Microsoft’s Asia business, will serve as president of the unit. The move comes as Microsoft and other major AI companies increase spending on customer deployment and implementation. Amazon recently announced a similar initiative, while Anthropic and OpenAI have also formed teams focused on helping clients apply AI tools in business settings.