About This Deal

Microsoft Corporation acquired Semantic Machines, a transaction announced in May 2018.

Semantic Machines operates in AI (conversational AI), is based in Berkeley, California, USA. Microsoft acquired Semantic Machines, a Berkeley company using machine learning to build conversational AI that goes beyond command-and-response bots toward natural dialogue. Microsoft used the technology to advance products like Cortana. Financial terms were not disclosed.

Establish a conversational AI center of excellence in Berkeley and combine dialogue technology with Microsoft's speech and language work.

Deal Terms

Acquirer
Microsoft Corporation
Target
Semantic Machines
Value
Not disclosed
Date
May 2018
Type
Acquisition
Status
Official-source — no SEC filing

Transaction Details

Target HQ
Berkeley, California, USA
Segment
AI (conversational AI)
Announced
May 20, 2018

In Their Words

With the acquisition of Semantic Machines, we will establish a conversational AI center of excellence in Berkeley.David Ku, CVP and Chief Technology Officer, Microsoft AI & Research

Advisors

Advisory firms were not disclosed for this transaction.

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Sources: Press release ↗ · Last updated July 16, 2026

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