In the middle of the battle between Microsoft and Sony for the console gamers, the announcement from these two companies was released on May 16, stating that two companies are cooperating to develop cloud-based solutions for AI and gaming.
This strategic partnership may sound unusual as the two big rivals become partners, but it is beneficial to both sides. For Microsoft, it will receive help from Sony to explore how to support the joint cloud gaming plans using the current Microsoft Azure data centers, which includes “building better development platforms for the content creator community.”
On the other hand, Microsoft will assist Sony in terms of technology; for example, “collaboration in the areas of semiconductors and AI” and “new intelligent image sensor solutions.” Additionally, Sony will be allowed to incorporate the AI tools of its partner into its present technology.
Basically, you can refer to this relationship as software and hardware thing: Microsoft is supporting Sony with AI and other stuff while Sony is assisting Microsoft with developing semiconductors and Azure technology.
In the meantime, Satya Nadella, the CEO of Microsoft, shared that