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Microsoft and 3M announced a strategic partnership on July 15, 2026, to integrate 3M’s Expanded Beam Optical (EBO) technology into Azure’s AI data center infrastructure. This deployment makes Microsoft the first hyperscale provider to adopt EBO, which is designed to significantly improve interconnect performance and energy efficiency for large--scale AI training. As part of the agreement, 3M will also leverage Microsoft’s AI stack to accelerate its internal digital transformation. This collaboration directly addresses physical infrastructure bottlenecks currently limiting AI scaling and enhances Azure's competitive positioning in high--performance computing.

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