Microsoft Opens AI Co-Innovation Lab in Wisconsin to Boost Manufacturing Innovation

Microsoft's New AI Lab Powers Wisconsin Manufacturing - Microsoft (NASDAQ:MSFT)

Microsoft Corp MSFT, in partnership with the Wisconsin Economic Development Corporation (WEDC), the University of Wisconsin-Milwaukee (UWM), and TitletownTech, announced on Wednesday the opening of an AI Co-Innovation Lab on the UWM campus. It marks Microsoft's first AI Co-Innovation Lab dedicated to manufacturing innovation. The lab's launch comes one year after Microsoft's $3.3 billion investment to build AI infrastructure in Wisconsin. From real-time fault detection in industrial machinery to multilingual voice assistants that streamline gate, dock, and yard logistics, local companies are working to apply Microsoft's AI technologies to improve operations and decision-making. Others are building tools to forecast supply chain lead times, manage hydroponic farms, and deliver proactive customer support. Also Read: Rising AI, Analytics Budgets Could Lift Microsoft, Snowflake, Datadog The lab also works with organizations across industries, including small and medium-sized businesses, enterprises, startups, and academia. This reflects the broad networks and experience of the lab's founding partners: Microsoft, WEDC, UWM, and TitletownTech. In January 2025, Microsoft announced it would temporarily pause construction on parts of its data center project in Mount Pleasant, Wisconsin. However, the company confirmed it still plans to finish the data center's first phase, with a total investment of $3.3 billion expected by the end of 2026. The Mount Pleasant site holds a historical context: it was originally selected for a Foxconn megaproject that was ultimately canceled. Foxconn, formally known as Hon Hai Precision Industry, is a multinational electronics contract manufacturing company and a major supplier for Apple Inc. AAPL. Foxconn had initially pledged a $10 billion investment in the area, but this commitment was later reduced significantly to $672 million. Microsoft has made substantial financial commitments to AI development, allocating approximately $80 billion in fiscal 2025 to develop data centers globally. These data centers are crucial for supporting AI model training and deploying AI and cloud-based applications. In May 2025, Microsoft showcased new products and partnerships with OpenAI, Nvidia Corp. NVDA, and Elon Musk's xAI, all targeting Microsoft Azure cloud clients to sell AI models during its annual Build conference in Seattle. Microsoft introduced a new coding "agent," among other innovations. Goldman Sachs analyst Kash Rangan told the Financial Times that Microsoft is the AI ringleader, citing it as the top platform and catalyst for making models work. MSFT Price Action: MSFT stock was trading higher by 0.31% to $493.82 premarket at last check Thursday. Read Next: BofA Sees $155 Billion Agentic AI Boom By 2030, Names Key Beneficiaries Photo via Shutterstock MSFTMicrosoft Corp$493.800.31%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum69.65Growth50.54Quality34.07Value13.23Price TrendShortMediumLongOverviewAAPLApple Inc$201.30-0.13%NVDANVIDIA Corp$156.061.13% This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Microsoft, Wisconsin Economic Development Corporation, University of Wisconsin-Milwaukee and TitletownTech officially open AI Co-Innovation Lab to accelerate manufacturing innovation

MILWAUKEE, June 25, 2025 /PRNewswire/ -- Microsoft Corp., in collaboration with the Wisconsin Economic Development Corporation (WEDC), the University of Wisconsin-Milwaukee (UWM) and TitletownTech announced on Wednesday the opening of an AI Co-Innovation Lab on the UWM campus. This marks Microsoft's first AI Co-Innovation Lab with a dedicated focus on manufacturing innovation. The lab's launch comes one year after Microsoft's landmark investment to build AI infrastructure in Wisconsin. Operating out of a temporary home on the UWM campus over the past year, the lab worked with a handful of companies from across Wisconsin to build AI solutions. Recent engagements show how manufacturers and other organizations are using AI to solve real-world challenges. From real-time fault detection in industrial machinery to multilingual voice assistants that streamline gate, dock and yard logistics, local companies are working to apply Microsoft's AI technologies to improve operations and decision-making. Others are building tools to forecast supply chain lead times, manage hydroponic farms and deliver proactive customer support. While the lab is rooted in manufacturing innovation, it works with organizations across industries, spanning small and medium-size businesses, enterprises, startups, and academia, reflecting the broad networks and experience of the lab's founding partners: Microsoft, WEDC, UWM and TitletownTech. AI promises to drive innovation and boost productivity in every sector of the economy. The Co-Innovation Lab will ensure that Wisconsin is well positioned to capitalize on that opportunity and to serve as a model for applied innovation around the world. "A year ago, alongside our $3.3 billion infrastructure investment, we committed to using the power of AI to help advance the next generation of manufacturing companies, skills and jobs in Wisconsin and across the country," said Rima Alaily, corporate vice president and general counsel, infrastructure legal affairs at Microsoft. "Thanks to our partnership with WEDC, TitletownTech and UWM, we're delivering on this commitment. With access to cutting-edge AI technology and technical guidance to bring their ideas to life, we can't wait to see what Wisconsin companies will build." "Through the strength of this partnership between Microsoft, TitletownTech, UWM and WEDC, the AI Co-Innovation Lab is helping businesses of all sizes and across all sectors apply the power of AI to their daily operations," said Missy Hughes, secretary and CEO of Wisconsin Economic Development Corporation. "This is an exciting new chapter for our state -- and for the world." "This lab will have a profound impact on our faculty members' and our students' ability to drive innovation and prepare their careers," said University of Wisconsin-Milwaukee Chancellor Mark Mone. "Harnessing the power of AI and cloud technologies will help Wisconsin manufacturers advance their competitive edge while offering students hands-on, real-world experience." "The lab brings a startup mindset to industry by moving fast, building with purpose and focusing on outcomes," said TitletownTech Managing Partner Craig Dickman. "As AI becomes foundational to every sector, building fluency is critical not just for innovation but for staying competitive." The AI Co-Innovation Lab helps catalyze businesses toward AI adoption and acceleration through hands-on collaboration. Teams partner with either UWM or TitletownTech to define meaningful use cases and work directly with Microsoft engineers to explore and shape AI-driven solutions. Depending on the need, the lab supports both full prototyping sprints, where teams build working solutions using Microsoft's cloud and AI technologies, and design sessions that focus on solution architecture and feasibility. This flexible model gives startups, manufacturers and enterprises the strategic and technical support to unlock new value, drive efficiency and move confidently into AI-powered innovation. By equipping Wisconsin-based organizations with cutting-edge tools and talent, the lab ensures that the state is well positioned to compete and lead in an increasingly global, technology-driven economy. Microsoft (Nasdaq "MSFT" @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.