Microsoft has announced it is acquiring natural language and AI messaging startup Wand Labs as part of a larger strategy to build out "conversation as a platform" (via TechCrunch).
Founded in 2013 by former Google staffer Vishal Sharma, Wand Labs' stated aim is "to tear down app walls, integrate your services in chat, and make them work together so you can do more with less taps".
Previously, Wand apps focused on using conversational interfaces to allow users to perform collaborative tasks, such as enabling a friend to control a Nest thermostat, for example. (All Wand apps have been removed from the App Store since the announcement.)
"I'm proud of the work my team has done and what we've already accomplished in this emerging space," said Sharma in a statement on the Wand Labs website. "I'm delighted to be joining a company that shares our passion and enthusiasm for this new era where conversation is the central focus. Making experiences for customers more seamless by harnessing human language is a powerful vision and one that motivates me and my team."
The terms of the buyout have not been disclosed, but the fledgling Silicon Valley startup has just seven employees – a world away from Microsoft's recent $26.2 billion acquisition of LinkedIn, which has 9,700 full-time employees with offices in 30 cities around the world.
The two deals are likely related, however, as Microsoft appears to be maneuvering significant investment in the direction of conversational chat bot services backed by big data, natural language processing, and predictive analytics.
Wand employees are expected to be integrated into Microsoft's Bing and Cortana teams, as the company follows a larger tech trend towards an era of conversational AI services and virtual messaging assistants.
Introducing chatbots into popular messaging apps are becoming more and more popular, with platforms like Kik and Skype gaining bot features to provide users with interactive chat logs that provide information on the weather, entertainment, or world news.
Facebook recently introduced chatbots to Messenger, and provided developers with toolkits to create third-party customer service chatbots and live chat APIs.
In the smart home sector, similar moves are aiming to make virtual assistants more intelligent at performing tasks and more responsive to specific queries, such as Amazon Echo's recent "skills" upgrade, which enables its Alexa assistant to integrate with over 1,000 third-party apps.
Google recently announced its Echo rival, Home, while Apple is also rumored to be working on a similar, Siri-based device for the home.
Apple has reportedly been working on its rival device since before the Amazon Echo debuted in November 2014. Google Home will be available later this year, but it is not known when Apple will be ready to debut its home accessory or how it will fit into the company's existing product lineup.
In a related move, Apple announced this week that it would open Siri up to third-party developers with a public API, allowing users to summon Apple's personal assistant AI to access third-party services and apps hands-free, opening the door to a potential smart home assistant with enhanced functionality and contextual awareness.
In October 2015, Apple acquired VocalIQ, a UK-based startup that had spent the last 10 years researching natural language, belief tracking, decision making, and message generation, in an attempt to develop a next-generation natural language API.
It's early days, but Apple may introduce the API in its Echo competitor because of its ability to go beyond the "session-based" contextual responses touted by the likes of Viv.
Top Rated Comments
Apple indeed is on the top for smartphones, but how much longer can they rely on idevice sales, when the competition is working hard at their own strategy?
Take a look at Apple's service revenues: they're booming, bigger than the Mac. This is the result of Apple's own strategy.
The difference is that competitors publish roadmaps, vaporware, etc to wow analysts, whereas Apple works mostly in secret. And their resources far, far outstrip anyone elses's.
You seem to be forgetting about the business that aren't so consumer facing. Microsoft too have many partnerships with other companies - more than Apple, probably.
What about government contracts around that world that include education, military, administration to provide software and services.
Microsoft's office products are still highly used, as Windows of course.
Yes, I'd say microsoft were still "extremely" relevant in the world today.
Cloud - Azure is doing OK - Microsoft's own platform on which they also host their own software, similar to iCloud and more functional. Oh wait.. iCloud doesn't run on Apple's own infrastructure does it?
Entertainment - Well, Xbox - very popular.
AI - microsoft have an AI group - http://research.microsoft.com/en-us/groups/ai/
Also - AI - There is Cortana - for consumer facing.
Given, the areas that Microsoft do business - you still think microsoft are not relevant in the world today?
Really.? BS.
Its Apple that are having to find ways of iOS and macOS to play nice and I've been using Cortana on my Surface for a while.
MS are taking chances. Actually really exciting ones that are maybe a decade away from being the next big thing. Maybe. But taking that chance takes balls, ideas and innovation.
Apple have caught up with emojis and stickers and Siri.
How long before iPhones become dull and Apple lose that cash cow?
Oh. It already happened.
Oh I should point out that my move to windows was born out of frustration at Apple not getting their ***** together years ago.
The transition was painless.
[doublepost=1466200337][/doublepost]Actually this is interesting. I deleted my linkedIn account due to spamming. However the spam was due to desperation on linkedIn's part.
With the massive cash cow of MS behind them they will be able to focus on whatever it is they do, according to friends of mine it's huge in the professional market - I know professional is a forgotten word in the Apple world.
So, who knows. Could end badly, could be interesting.
Whatever happens I doubt I'll be back. Removing myself from any and all social networks has made the past 8 years pretty awesome.
I think it's smart for MS to look for other services. Their cash cow of Windows is dwindling and although the have office as another cash cow, that has saturated so not a lot of growth their I suspect. They have down well with azure and other cloud services so expanding here through acquisition does seem to put them in a good place. How they integrate this all will be key. The other key will be how they monetize the services. Subscription? Ads? We shall see.