New Telstra & Microsoft Partnership To Boost AI In Australia

As the usage of artificial intelligence (AI) and generative AI (GenAI) tools and platforms increases, the need to possess powerful and capable infrastructure becomes all the more crucial to power AI ecosystems.

Resultantly, AI companies are looking to build their infrastructure through investments and partnerships with telecommunication companies.

One such partnership includes the recent one between AI industry leader Microsoft and Telstra, the Australian telecommunications company.

The new partnership, which aims to extend Microsoft’s AI infrastructure in Australia, builds on a 15-year history of a wide range of collaborations between the two companies.

So, what’s the newest collaboration between the two companies about and how will it help them? Let’s explore!
 

What Did Telstra And Microsoft’s New Partnership About?

 

• Through a news release published on its website, Microsoft announced that Telstra and Microsoft have expanded their partnership.

• The move, which marks a significant milestone in the evolution of AI innovation in Australia, will see Telstra combine its leading Intercity Fibre Network project with Microsoft’s leading AI technology to drive digital transformation and enhance Australia’s AI ecosystem.

• This strategic partnership enables Microsoft to extend its AI infrastructure in Australia, addressing its growing demand.

• As such, Microsoft is a foundational partner on Telstra’s new ultra-fast Intercity Fibre Network and has signed contracts for the first routes while engaging with Telstra InfraCo to deliver powerful AI capabilities through enhanced connectivity solutions.

• The move will also see Telstra invest in 21,000 Copilot for Microsoft 365 licenses, enabling its employees to adapt and thrive in an ever-growing AI ecosystem.

• This makes it the largest deployment of the generative AI service in Australia and one of the largest of any telecommunications company globally.

• AI technologies generate and process large amounts of data and need fast, reliable, secure and scalable connectivity, a critical component that will be delivered through Telstra’s Intercity Fibre Network.

• The project currently boasts around 1,800 kilometers of fiber already laid across the country and is set to drive growth, connectivity and digital prosperity across Australia.

• As per Telstra’s CEO, Vicki Brady, the symbiotic partnership highlights the importance of connectivity infrastructure in fueling AI advancements.

• “Microsoft’s leadership in AI is driving the demand for capacity in our infrastructure, and Telstra is building that connectivity to meet this demand. Together we’re building the AI ecosystem of Australia.”

 

What Did Telstra And Microsoft Executives Say?

 

• Vicki Brady, CEO of Telstra, said, “As we move into this new era of AI, connectivity has never been more fundamental. There’s so much to be excited about when it comes to AI – including generative AI tools like Copilot – but none of it works without the foundational layer of secure, reliable connectivity.”

• [Contd.] “Our intercity fibre network routes connect Australia to the world, seamlessly transitioning terrestrial fibre to our extensive international subsea fibre network.”

• [Contd.] “This partnership, which involves building high-capacity intercity fibre routes for Microsoft, further enables Microsoft to boost its capacity and achieve end-to-end connectivity across key telecommunications routes in Australia and across the Asia-Pacific region.”

• [Contd.] “We’re dedicated to equipping our people with the best AI technology and upskilling them to thrive in the workforce of the future."

• [Contd.] Giving our team access to Copilot not only gives them the space and time to spend on more meaningful tasks, but also fosters a culture of continuous learning, improvement and innovation as we drive digital and AI transformation through our business.”

• Judson Althoff, EVP and Chief Commercial Officer at Microsoft, said, “Our strategic partnership with Telstra reflects Microsoft’s commitment to empowering organizations' AI transformation responsibly and securely.”

• “By extending our AI infrastructure, we can continue supporting our customers and partners as they unlock new opportunities and realize meaningful business value with AI.”

• “Together, we are enabling AI transformation across Australia that enriches employee experiences, reinvents customer engagement, reshapes business processes, and bends the curve on innovation.”

Do you think this move will help Microsoft capture a commanding position in the Australian AI market? Do you think Microsoft’s rivals need to make similar moves?

Let us know in the comments below!