Microsoft launches a $2 billion AI Unit, employs 6,000 forward-deployment engineers
With this initiative, Microsoft will embed its engineers and AI experts within customer organisations instead of simply selling AI software.
- Jul 3, 2026,
- Updated Jul 3, 2026 11:32 AM IST
Microsoft has announced a new operating business called Microsoft Frontier Company, which will focus on helping customers and clients to adopt AI at scale across their workflows. The tech giant states that the company will go beyond traditional Forward Deployed Engineering (FDE).
6,000 engineers to work directly with enterprise customers
With this initiative, Microsoft will embed its engineers and AI experts within customer organisations instead of simply selling AI software. These experts will help customers design, deploy, and continuously improve AI solutions tailored to their needs.
Must read: Amazon invests $1 Billion to build Forward Deployed Engineer team: All details
For the new Microsoft Frontier, the company plans to invest $2.5 billion, which will include deploying 6,000 industry and engineering experts who will work closely with clients worldwide. These engineers will be tasked to co-design, co-innovate, deploy and continuously improve AI systems at scale based on measurable business outcomes.
Microsoft says Frontier goes beyond traditional FDE
In a statement, Microsoft’s Commercial Business CEO Judson Althoff said, “This goes beyond what has been labelled as Forward-Deployed Engineering.” He said that the company “will be the largest, most capable, outcome-driven engineering organisation in the industry.”
“This is what Microsoft Frontier Company was built to do: focus on end-to-end Frontier Transformation, enabling customers to amplify their IQ with AI while refining their differentiated value in the markets that they serve,” the company blog post added.
Must read: Anthropic appoints former GitLab executive Jai Gidwani to India GTM team
Microsoft also claims that the initiative has already started to show positive results for customers. Companies like London Stock Exchange Group (LSEG), Land O'Lakes, Unilever, and Novo Nordisk have already adopted Microsoft's AI deployment model. It also plans to expand globally with major consulting and professional services firms like Accenture, Capgemini, EY, KPMG, and PwC
Microsoft joins Amazon, OpenAI and Anthropic in AI deployment race
The announcement comes days after Amazon announced it would invest $1 billion in its own AI deployment initiative. This investment follows the Forward Deployed Engineering (FDE) model, where engineers work closely with customers to build, customise, and implement AI solutions tailored to their businesses.
Alongside Microsoft and Amazon, OpenAI and Anthropic have also launched similar AI deployment ventures. However, they are backed by private equity firms, which provide outside investment to help fund and expand these businesses.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine
Microsoft has announced a new operating business called Microsoft Frontier Company, which will focus on helping customers and clients to adopt AI at scale across their workflows. The tech giant states that the company will go beyond traditional Forward Deployed Engineering (FDE).
6,000 engineers to work directly with enterprise customers
With this initiative, Microsoft will embed its engineers and AI experts within customer organisations instead of simply selling AI software. These experts will help customers design, deploy, and continuously improve AI solutions tailored to their needs.
Must read: Amazon invests $1 Billion to build Forward Deployed Engineer team: All details
For the new Microsoft Frontier, the company plans to invest $2.5 billion, which will include deploying 6,000 industry and engineering experts who will work closely with clients worldwide. These engineers will be tasked to co-design, co-innovate, deploy and continuously improve AI systems at scale based on measurable business outcomes.
Microsoft says Frontier goes beyond traditional FDE
In a statement, Microsoft’s Commercial Business CEO Judson Althoff said, “This goes beyond what has been labelled as Forward-Deployed Engineering.” He said that the company “will be the largest, most capable, outcome-driven engineering organisation in the industry.”
“This is what Microsoft Frontier Company was built to do: focus on end-to-end Frontier Transformation, enabling customers to amplify their IQ with AI while refining their differentiated value in the markets that they serve,” the company blog post added.
Must read: Anthropic appoints former GitLab executive Jai Gidwani to India GTM team
Microsoft also claims that the initiative has already started to show positive results for customers. Companies like London Stock Exchange Group (LSEG), Land O'Lakes, Unilever, and Novo Nordisk have already adopted Microsoft's AI deployment model. It also plans to expand globally with major consulting and professional services firms like Accenture, Capgemini, EY, KPMG, and PwC
Microsoft joins Amazon, OpenAI and Anthropic in AI deployment race
The announcement comes days after Amazon announced it would invest $1 billion in its own AI deployment initiative. This investment follows the Forward Deployed Engineering (FDE) model, where engineers work closely with customers to build, customise, and implement AI solutions tailored to their businesses.
Alongside Microsoft and Amazon, OpenAI and Anthropic have also launched similar AI deployment ventures. However, they are backed by private equity firms, which provide outside investment to help fund and expand these businesses.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine