Microsoft is nearing a deal to buy voice recognition pioneer Nuance Communications that would value the artificial intelligence company at about $16bn, according to people briefed about the matter.
The deal would be the second-largest acquisition ever by Microsoft. It comes after the tech giant had been exploring a number of takeover opportunities over the past 12 months, including an approach for social media groups TikTok, Pinterest and Discord.
People briefed about the matter said a deal could be announced this week as the two sides are close to finalising the transaction. They warned there was still a slim chance that the deal could fall apart.
A buyout could provide multiple advantages, however. Nuance is well-known for its AI-guided speech recognition, and Microsoft could incorporate both that and any other AI tools (including those for customer service) into its products. The potential deal might also fuel Microsoft’s healthcare ambitions. The company has already worked with Nuance on Cloud for Healthcare and other projects, including one that would turn doctor-patient conversations into medical records.
This wouldn’t necessarily pose danger for some of Nuance’s public-facing tech, such as its Dragon Anywhere voice dictation software. It won’t be surprising if Microsoft rethinks the strategy for that software, though, so don’t be surprised if it gets an overhaul or eventually folds into other Microsoft apps and services.
