Microsoft doubles down on cloud healthcare business with $16 billion Nuance buy

FILE PHOTO: A Microsoft logo is seen in Los Angeles, California U.S. November 7, 2017. REUTERS/Lucy Nicholson/File Photo

(Reuters) - Microsoft Corp said on Monday it would buy artificial intelligence and speech technology firm Nuance Communications Inc for about $16 billion, as it expands cloud solutions for healthcare customers.

The deal comes after the companies partnered in 2019 to automate clinical administrative work such as documentation. It shows Microsoft's ambition to extend its leadership into an industry where digital transformation has picked up speed during the pandemic. Healthcare providers have invested more in technology to improve productivity and digital health services.