ASHBURN, Va. - DXC Technology (NYSE: NYSE:DXC), a Fortune 500 global technology services provider, has announced a collaboration with infrastructure giant Ferrovial (NASDAQ: FER) and tech heavyweight Microsoft (NASDAQ:MSFT) to develop an artificial intelligence platform named Quercus. This new generative AI platform is designed to help organizations worldwide to integrate AI solutions into their business operations, aiming to automate processes and improve efficiency and profitability.
Quercus is built on platform engineering principles and will be standardized by DXC to provide an innovative AI solution for its global customer base. The platform will be customized to meet the specific needs of each customer, thereby reducing the time needed to develop tailored AI solutions. This move is expected to help organizations deploy generative AI more quickly and effectively, giving them a significant competitive edge in their respective industries.
The tripartite effort will also focus on accelerating the adoption of generative AI to enhance Ferrovial's internal operations and market offerings. DXC will take the helm in evolving, maintaining, and commercializing Quercus, which will operate on Microsoft's Azure cloud platform and leverage OpenAI technology.
DXC's Executive Vice President, Howard Boville, expressed confidence that Quercus will deliver substantial value to customers and provide them with a significant market advantage. Ferrovial has already begun using an early version of the Quercus platform, implementing an AI virtual assistant to support various business functions such as human resources and cybersecurity.
Dimitris Bountolos, CIIO of Ferrovial, highlighted the platform's potential to optimize processes and improve operational efficiency. Microsoft's involvement, as outlined by Alberto Granados, President of Microsoft Spain, emphasizes the importance of integrating AI responsibly, considering critical aspects like security, privacy, and ethical implications.
This announcement contains forward-looking statements, and while the companies are optimistic about the future of Quercus, they acknowledge that outcomes cannot be guaranteed and are subject to various risks and uncertainties.
DXC Technology is known for helping global companies manage their mission-critical systems and operations, modernizing IT, optimizing data architectures, and ensuring security and scalability in various cloud environments. This partnership represents a strategic move to further enhance its service offerings with advanced AI capabilities. The information for this report is based on a press release statement.
InvestingPro Insights
As DXC Technology (NYSE: DXC) embarks on its collaboration to develop the Quercus AI platform, its financial health and market performance provide a backdrop for evaluating this strategic move. According to real-time data from InvestingPro, DXC's market capitalization stands at $3.64 billion, reflecting its stature in the IT services industry. The company's recent performance shows a challenge in revenue growth, with a decrease of 6.57% over the last twelve months as of Q3 2024, signaling potential areas for Quercus to impact.
An InvestingPro Tip highlights that DXC is expected to see net income growth this year, which could be bolstered by the efficiencies and innovations driven by the Quercus platform. Moreover, the company's valuation implies a strong free cash flow yield, indicating that it is generating a healthy amount of cash relative to its share price. This could provide DXC with the flexibility to invest in new technologies like Quercus and to adapt to market demands swiftly.
Despite recent volatility in stock price movements, with a 1-year price total return of -16.33%, the company's engagement in developing AI solutions such as Quercus may present an opportunity for DXC to revitalize its market position. It's worth noting that DXC does not pay a dividend, which could be a reflection of its focus on reinvesting earnings back into the business to drive growth and innovation.
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