Microsoft Ventures launches new fund for AI startups, invests in 4 more startups

In a bid to further beef up its AI capabilities, Microsoft has announced a brand new fund focused on startups that work with Artificial Intelligence. Not just this, the company is also the first announced backer for Element AI, a new incubator out of Montreal co-founded by “the godfather of machine learning” Yoshua Bengio.

Microsoft's venture arm announced in May 2016 started off with Cloud as its first area of focus. It's now changing gears towards machine learning but isn’t disclosing just how much money it intends to invest in artificial intelligence, or in Element AI specifically.

The Redmond-based tech behemoth also announced investments of an unspecified amount in three other companies: Dynamic Signal, a communications company; Tact, a "sales experience" company; and xAD, a sales intelligence company.

As for Element AI, Microsoft is taking a seed investment in the incubator, founded by Yoshua Bengio. The firm is based out of Montreal, a big area for AI with a strong focus at two local universities. Others involved in Element AI include entrepreneur Jean-Francois Gagne; Nicolas Chapados; and Real Ventures. The incubator will also receive access to Microsoft services.

“AI holds great promise to augment human capabilities and improve society. Microsoft is committed to democratising AI with guiding principles to drive positive impact. Element AI shares our approach and philosophy, said, Nagraj Kashyap, head of Microsoft Ventures.

As of today, there are now 18 investments in the Microsoft Ventures portfolio.