When it comes to technological innovations, major enterprises and startups need each other to succeed. Startups give larger, more mature companies easier access to cutting-edge technology with greater agility and reduced risk. And when a large enterprise buys into a startup’s product or service, the startup gains the revenue, stability, and credibility they need to fuel growth.

But finding and connecting with the right partners can be challenging, and in a new frontier like AI, it can be especially daunting—so many AI startups have entered the market in recent years that it’s hard to keep count. By many estimates, there are now more than 10,000. How is an enterprise supposed to find its match in such a crowded and confusing space?

In the multi-layered landscape of AI, large tech firms bridge the gap between startups and enterprises. Microsoft provides the infrastructure and generative AI models that require major investment. Startups specialize in domain-specific, industry-focused applications and tooling. When we work together, it’s a winning combination that results in the kind of enterprise-ready AI that enterprises need.

As a Partner at Microsoft for Startups, I lead a global team in the Pegasus Program. I always say it’s the best job in the world because we get to help startups make the most of not just the Microsoft stack and models, but also our knowledge, experience, and relationships. The program’s Customer Community is where we “match make” for enterprises and startups to foster exciting new partnerships and co-innovations.

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The following are key areas where I see Microsoft really adding value to bridge the gap between enterprises and startups for delivery of enterprise-ready AI.

AI startups move fast—Microsoft helps them move even faster

Startups are nimble by nature, and AI is taking it to a whole new level. With the emergence of AI, we have seen an explosion in new use cases and tooling needs—from data hygiene platforms to vector databases. For example, Synthesized, a startup that specializes in approximating datasets with synthetic data, says AI helps their small teams create synthetic data for testing and training faster and better so they can “punch above their weight,” delivering like a much larger team. Enterprises can adopt AI quicker because their highly accurate synthetic data is used to build AI use cases without privacy concerns.

Plus, Microsoft helps all startups in the Pegasus Program to develop and test their solutions quickly by giving them access to AI models and a high-performance GPU cluster in the Microsoft Cloud. Having access to this kind of infrastructure and foundational support gives startups the extra muscle to move even faster from ideation to production. And, when a startup has an app or service on Microsoft Azure that is in production and ready to go to market, it can be vetted for inclusion to drive more leads and speed their sales cycle.  

Specialization is differentiation—Microsoft helps startups focus and refine

Startups differentiate by specializing in doing one thing and doing it better than anybody else—and they need to resist the temptation to go broad to meet the needs of every potential customer. Microsoft helps startups focus on their core competencies by providing them with domain-specific guidance, mentorship, and co-innovation opportunities.

Pangaea Data’s novel AI driven product, for example, discovers more untreated (undiagnosed, misdiagnosed, at risk, uncontrolled, and miscoded) patients based on their records and clinical guidelines, thereby mimicking a clinician’s manual process. Microsoft helped Pangaea Data connect and build trust users with their solution, which has helped the United Kingdom’s National Health Service and two global pharmaceutical companies discover 6 times more undiagnosed and miscoded cachectic cancer patients.

Holistic AI created a governance platform for complete management of AI systems, including discovery and inventory, risk mapping, risk mitigation, monitoring, and compliance readiness. Their diverse team brings together global expertise across various domains, including data science, machine learning, law, and policy. Through the Pegasus Program, they are continually working with enterprises to explore new use cases that will enable them to grow while staying focused on their core competencies in governance, risk management, and compliance.

Enterprise solutions require enterprise readiness—Microsoft knows how to get there

Enterprises have complex technology environments that can’t just be “ripped and replaced” to make way for AI, so startups need to offer solutions that integrate seamlessly. We were our own “customer zero” when we created Microsoft Copilot for our own business applications, and startups in our Pegasus Program are now learning from our experience.

Weights & Biases, an AI developer platform, not only aims to create solutions that seamlessly integrate for their enterprise customers but also take the same approach to integrating AI themselves. They observed that “most customers look at AI as something that improves what they’re already doing, augmenting their core offerings rather than creating end-to-end machine learning products. This is how we approach our use of AI as well. With technologies as transformative as AI, the instinct is to think big. Plenty of companies have. But rather than approach AI as a way to change our entire business, we look first at investments that can help our team be more productive.”

And of course, trust is something that can be difficult for startups to establish on their own. Microsoft stakes its reputation on trust, so customers know that the startups in our Pegasus Program are companies they can trust as well. Global manufacturer Mars shared that Microsoft was a “gateway to the startup ecosystem where every collaboration becomes a map to success.”

Find startups with the right enterprise-ready AI for your business

The winning combination of AI startups and major tech firms can create a virtuous cycle of co-innovation and co-creation, where both parties learn from each other, complement each other, and enhance each other. Together, they can deliver enterprise-ready AI solutions that are faster, smarter, and more trustworthy.

If you think your enterprise could benefit from working with us and the AI startups we support, join the Pegasus Customer Community today. You’ll receive access to exclusive programs and resources, including pre-vetted, enterprise-ready AI startup solutions, and Microsoft will help you find your match. Visit Microsoft AI for news, announcements, customer stories, and more.

Tom Davis is a Partner at Microsoft for Startups where he focuses on bringing business value to strategic startups in vertical industry segments and emerging AI use cases. You can read more blogs by Tom on the Microsoft for Startups blog.