Microsoft, Sony partner on streaming games, chips and AI

Kenichiro Yoshida, President and CEO, Sony Corporation and Satya Nadella, CEO, Microsoft Corporation. (File/Reuters)
Updated 17 May 2019
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Microsoft, Sony partner on streaming games, chips and AI

  • The deal is in its early stages, with many specifics yet to be determined
  • The two would collaborate to stream games and content to consumers and offer game makers new development tools

SAN FRANCISCO: Microsoft Corp. and Sony Corp. on Thursday said they struck a strategic partnership in which Sony would use Microsoft’s cloud for streaming games and media and the two would work together to develop image sensors.
The deal is in its early stages, with many specifics yet to be determined. But the owners of two major consumer interactive entertainment franchises — Microsoft’s Xbox platform and Sony’s PlayStation — would collaborate to stream games and content to consumers and offer game makers new development tools.
“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,” Sony Chief Executive Kenichiro Yoshida said in a statement. “I believe that our joint development of future cloud solutions will contribute greatly to the advancement of interactive content.”
Sony shares jumped nearly 11 percent as Asian markets opened. Microsoft’s stock closed up 2 percent on Thursday.
Sony’s deal with Microsoft comes at a time when the Japanese firm’s gaming business is losing some steam as its PlayStation 4 (PS4) console nears the end of its life.
Analysts widely expect Sony to launch a next-generation console in 2020 to replace the five-year old PS4, but for this year at least Sony has flagged a drop in profit.
For Microsoft, the deal bolsters its Azure cloud computing business, which helped push its market value past $1 trillion last month. It also helps the Redmond, Washington-based company counter cloud-market leader Amazon.com Inc’s Amazon Web Services.
Amazon has also jumped into the gaming market, offering game makers new technology tools, and with its nearly $1 billion acquisition of Twitch, a major destination for gamers to watch other players competing in the e-sports market.
Japan’s Sony is also a major supplier of camera chips for smartphones and other devices.
Sony and Microsoft said they will potentially develop new image sensor chips that use Microsoft’s artificial intelligence (AI) technology for business customers. The two companies did not specify how the chips would be used.
Intelligent cameras are currently being used in applications such as spotting defective items coming off manufacturing lines with greater accuracy than human inspectors.
Sony and Microsoft said they would explore how to use Microsoft’s AI tools in Sony’s consumer products “to provide highly intuitive and user-friendly AI experiences.”
Microsoft’s technology for tasks like recognizing images and understanding human speech is widely believed to be competitive with better-known rivals such Alphabet Inc’s Google, but its focus on business customers has left it fewer outlets for technology that consumers touch. Sony, by contrast, makes a wide range of televisions, phones and other consumer devices.
“Sony has always been a leader in both entertainment and technology, and the collaboration we announced today builds on this history of innovation,” Microsoft Chief Executive Satya Nadella said in a statement.


From barrels to bytes: How AI is powering Saudi Arabia’s industrial transformation

Updated 08 January 2026
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From barrels to bytes: How AI is powering Saudi Arabia’s industrial transformation

  • Inside the Kingdom’s drive to merge energy expertise with digital intelligence

RIYADH: Artificial intelligence is moving beyond concept to become a cornerstone of Saudi Arabia’s energy sector, reshaping how oil, gas, and power systems are managed and optimized.

Industry giants like Saudi Aramco are embedding smart systems into their operations to boost efficiency, reliability, and sustainability—key pillars in the Kingdom’s efforts to modernize its industrial base and diversify its economy.

According to the International Energy Agency, oil and gas companies were among the first to adopt digital technologies. The agency estimates that applying AI to power plant operations and maintenance could save up to $110 billion annually by 2035 through reduced fuel consumption and maintenance costs.

For Saudi Arabia, this technological momentum offers both a blueprint and an opportunity. Under Vision 2030, integrating data and intelligent automation is transforming how energy is explored, refined, and delivered.

At the heart of Saudi Aramco’s operations is a digital transformation strategy centered on artificial intelligence, big data, and the industrial Internet of Things. These technologies are applied at every stage of production—from mapping reservoirs and optimizing drilling to improving efficiency and safety.

AI also underpins Aramco’s Digital Transformation Program, which develops in-house smart tools and data-driven platforms designed to cut emissions, reduce costs, and enhance performance while ensuring a reliable energy supply.

A prime example is the Upstream Innovation Center, where engineers have implemented AI solutions that reduce fuel gas use in boilers, improve efficiency, and detect potential leaks through fiber-optic monitoring. At the Khurais oil field, more than 40,000 sensors monitor approximately 500 wells via an Advanced Process Control system—the first of its kind for a conventional oil field at Aramco. Digitization at Khurais has increased production by around 15 percent, doubled troubleshooting speed, and lowered both costs and environmental impact.

These advances illustrate how Aramco’s network is evolving into a connected, adaptive model, blending traditional engineering expertise with digital intelligence.

DID YOU KNOW?

• AI could save up to $110 billion a year in global power plant fuel and maintenance costs by 2035.

• Advanced Process Control enables real-time monitoring of hundreds of oil wells in the Kingdom.

• AI-powered simulations now replace weeks of manual analysis, enabling faster operational decisions.

As Saudi Arabia develops an AI-driven energy economy, the King Abdullah University of Science and Technology is bridging the gap between digital innovation and industrial application. 

Bernard Ghanem, chair of the Center of Excellence for Generative AI, said the university is working with Saudi Aramco to develop AI systems that predict the chemical properties of materials and accelerate research into direct air capture technologies for carbon dioxide removal.

He told Arab News that KAUST is partnering with SABIC and ACWA Power to apply AI in process optimization and materials discovery, turning lab-scale research into practical solutions for the energy sector.

Ghanem said KAUST’s generative AI materials program combines a robotic chemistry lab with its AI Chemist foundation model, a system that accelerates the development of catalysts, battery materials, and membranes for clean energy applications.

“This is our lab of the future, automating experimentation and speeding up energy innovation,” he said.

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Mani Sarathy, professor of chemical engineering at KAUST, noted that AI-based reinforcement learning tools are already improving efficiency in hydrocarbon refineries by enhancing simulations and shortening analysis cycles.

“AI is helping energy companies run complex simulations that once took weeks, enabling faster and more precise operational decisions,” he told Arab News.

Sarathy added that the next phase will combine automation with expert oversight. Hybrid human-AI control systems, he explained, are likely to become standard in critical operations, balancing digital autonomy with safety and reliability as Saudi industries expand AI deployment.

These efforts highlight KAUST’s growing role in transforming AI from an academic discipline into a driver of industrial innovation in Saudi Arabia’s energy sector under Vision 2030.

Meanwhile, Skeleton Technologies is bringing AI-driven energy storage solutions to Saudi partners, solutions that are already reshaping industrial systems across Europe and beyond. In Europe, the company combines artificial intelligence and advanced materials to reduce energy use and improve efficiency in data centers, electricity grids, and defense systems.

“Our solutions allow AI infrastructure to consume less electricity and reduce grid connection needs, making AI operations more energy efficient,” Arnaud Castaignet, vice president of government affairs and strategic partnerships at Skeleton, told Arab News.

Inside its factories, Skeleton uses AI-driven digital twin models, created with Siemens Digital Industries, to simulate production, optimize operations, and enable predictive maintenance, Castaignet said. At the core of its technology is curved graphene, a proprietary carbon material that gives Skeleton’s supercapacitors exceptional conductivity.

“It allows our supercapacitors to charge and discharge within microseconds, around 12 microseconds, something batteries cannot do,” Castaignet said.

The company’s flagship Graphene GPU system, built on these supercapacitors, cuts energy use in AI data centers by up to 40 percent and reduces grid requirements by 45 percent while boosting computing performance. The devices are free of lithium, nickel, and cobalt, relying instead on graphene derived from silicon carbide—essentially sand—processed entirely in Germany.

“To build sustainable AI infrastructure, you need energy-saving hardware as well as renewable power,” Castaignet added. “Our Graphene GPU shows both can work together.”

As Saudi Arabia continues linking engineering expertise with digital intelligence, its industrial progress is measured not only in barrels of oil but also in bytes, data, and the smart systems shaping its energy future.