Microsoft has scored a major cloud win, announcing a five-year cloud partnership with Coca-Cola, worth at least $1.1 billion.

According to Microsoft Coca-Cola has committed $1.1 billion to Microsoft Cloud and its generative AI platform. Coca-Cola is looking to adopt leading-edge technology and tap into the power of AI to help transform its business. The deal will see Microsoft Cloud become the beverage company’s preferred cloud platform.

“Through our long-term partnership, we have made significant progress to accelerate system-wide AI Transformation across The Coca-Cola Company and its network of independent bottlers worldwide,” said Judson Althoff, executive vice president and chief commercial officer at Microsoft. “We are proud to support Coca-Cola as it continues to embrace the era of AI and looks to solutions like Azure OpenAI Service and Copilot for Microsoft 365 to drive innovation across every area of its business.”

Microsoft says Coca-Cola has already migrated all of its application to Azure, along with many of the brand’s bottling partners. Coca-Cola has already been using the Azure OpenAI Service and wants to expand its AI deployment.

“This new agreement builds on the success of Coca-Cola’s partnership strategy with Microsoft, showing our commitment to ongoing digital transformation,” said John Murphy, president and chief financial officer of The Coca-Cola Company. “Our partnership with Microsoft has grown exponentially, from the $250 million agreement we initially announced in 2020 to $1.1 billion today.”

“Our expanded partnership with Microsoft is an important next chapter in Coca-Cola’s journey toward a digital-first enterprise powered by emerging technologies,” said Neeraj Tolmare, senior vice president and global chief information officer for The Coca-Cola Company. “Microsoft’s capabilities help accelerate our adoption of AI to create incremental enterprise value.”

The deal is a major win for the number two cloud provider, and an important vote of confidence at a time when Microsoft is facing increased scrutiny for its cloud security practices.