Microsoft announced Microsoft Frontier Co. on July 2, 2026, a new subsidiary that will embed 6,000 employees directly inside client organizations to help businesses move from AI experimentation into production deployment, backed by a $2.5 billion investment.
The model is forward deployed engineering, placing engineers, technical consultants, and industry-specific salespeople inside client operations rather than providing remote support or standard consulting engagements. Rodrigo Kede Lima, who has led Microsoft's Asia business, will serve as president of the new subsidiary.
"Customers are in very different places right now, and trying to really figure out AI," said Judson Althoff, CEO of Microsoft's commercial business. "Do they snap to one model from OpenAI or one model from Anthropic, or a family of models? Do they take it from a technology first mindset? How do they look at their existing business processes and operations?"
