The companies are partnering on cloud gaming, AI solutions, and semiconductors.

Today, Sony and Microsoft announced a partnership to focus on improving cloud gaming, AI solutions, and more.

The two tech giants signed a memorandum of understanding that established both companies will explore “joint development of future cloud solutions in Microsoft Azure to support their respective game and content-streaming services.” They will also explore the use of current Microsoft Azure datacenter-based solutions for Sony’s game and content streaming services, noting that these efforts will include building better development platforms for the content creator community.

The partnership will also explore collaboration in the areas of semiconductors and AI. The companies intend to integrate Sony’s image sensors with Microsoft’s Azure AI tech across cloud and edge, and leverage Sony’s semiconductors and Microsoft’s cloud technology.

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“For many years, Microsoft has been a key business partner for us, though of course the two companies have also been competing in some areas,” said president and CEO of Sony Kenichiro Yoshida. “I believe that our joint development of future cloud solutions will contribute greatly to the advancement of interactive content. Additionally, I hope that in the areas of semiconductors and AI, leveraging each company’s cutting-edge technology in a mutually complementary way will lead to the creation of new value for society.”

“Sony has always been a leader in both entertainment and technology, and the collaboration we announced today builds on this history of innovation,” said Microsoft CEO Satya Nadella. “Our partnership brings the power of Azure and Azure AI to Sony to deliver new gaming and entertainment experiences for customers.”

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While this partnership is certainly a positive step for both companies, it doesn’t necessarily signal the two working together like Microsoft and Nintendo have on expanding Xbox Live and bringing Cuphead to Nintendo Switch.

Last year, Microsoft announced its global game streaming service Project xCloud, which Xbox boss Phil Spencer has used to play Destiny 2 and Crackdown 3 while traveling.

Sony has also been investing in streaming, as a March PlayStation 4 update allowed users to stream their PS4 screen to iOS devices, and PlayStation Now has been Sony’s cloud gaming subscription service since 2014.

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Colin Stevens is a news writer for IGN. Follow him on Twitter.

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