Skip to main content

Microsoft acquires conversational AI startup Semantic Machines

The Visitor's Center at Microsoft headquarters is pictured July 17, 2014 in Redmond, Washington.
The Visitor's Center at Microsoft headquarters is pictured July 17, 2014 in Redmond, Washington.
Image Credit: Stephen Brashear / Getty Images/Microsoft

Watch all the Transform 2020 sessions on-demand here.


Microsoft today announced that it has acquired Semantic Machines to bolster its conversational AI offerings — like Cortana, the Azure Bot Service, and Microsoft Cognitive Services. Semantic Machines works in areas like speech synthesis, deep learning, and natural language processing.

VentureBeat spoke with Microsoft AI and Research Group CTO David Ku Monday for more details on what the acquisition means for Microsoft’s future in conversational AI.

Semantic Machines describes itself as a company bent on creating conversational AI that enables machines “to communicate, collaborate, understand our goals, and accomplish tasks.” It could help Microsoft compete with conversational computing initiatives from Amazon’s Alexa, Apple’s Siri, Google’s Assistant, and Samsung’s Bixby.

In addition, Semantic Machines has assembled a cadre of experts in the conversational AI arena, like Larry Gillick, former chief scientist for Siri at Apple, and well-known researchers like UC Berkeley professor Dan Klein and Stanford University professor Percy Liang.


June 5th: The AI Audit in NYC

Join us next week in NYC to engage with top executive leaders, delving into strategies for auditing AI models to ensure fairness, optimal performance, and ethical compliance across diverse organizations. Secure your attendance for this exclusive invite-only event.


“With the acquisition of Semantic Machines, we will establish a conversational AI center of excellence in Berkeley to push forward the boundaries of what is possible in language interfaces,” Microsoft AI and Research Group CTO David Ku said in a blog post.

Founded in August 2014, the company attracted $8.5 million in funding that year and another $12.3 million in December 2015. Investors include Bain Capital Ventures and General Catalyst Partners.