• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechFortune 500

Here’s Why Microsoft Bought This Hot Messaging Startup

By
Jonathan Vanian
Jonathan Vanian
Down Arrow Button Icon
By
Jonathan Vanian
Jonathan Vanian
Down Arrow Button Icon
June 16, 2016, 3:49 PM ET
World Economic Forum - 2016
DAVOS 2016; World Economic Forum -- Pictured: Satya Nadella, Microsoft CEO, takes part in a panel discussion at the annual World Economic Forum in Davos, Switzerland, on January 19, 2016 -- (Photo by: David A.Grogan/CNBC/NBCU Photo Bank via Getty Images)David A.Grogan—CNBC NBCU Photo Bank via Getty Images

Microsoft’s vision of a future in which people converse with computers and smartphones instead of twiddling with them got a bit clearer on Thursday.

The technology giant said it bought a small startup called Wand Labs, which builds messaging technology for apps. Wand’s chat app connects with some of the other apps installed on a user’s phone and shares those app features with other users regardless if those apps are installed on their phones.

For example, writer Steven Levy described in a profile of Wand that its app allowed him to learn that his friend was listening to the Neil Diamond song “Kentucky Woman” from his stereo even though Levy doesn’t use the Gracenote app on his phone.

Get Data Sheet, Fortune’s technology newsletter.

“From there, using other plug-ins already in the Wand universe, I could read the lyrics (Musixmatch), listen on Spotify, watch a music video of the song on YouTube, or buy it from Amazon,” Levy wrote of his experience.

Microsoft said the startup fits with the company’s investments and research into advanced communication technology, according to a blog post by David Ku, a corporate vice president of Microsoft’s information platform group. Microsoft CEO Satya Nadella explained during the company’s recent developer conference that he believes “the power of human language” will revolutionize the way people interact with machines and will be as game changing as the creation of the Internet.

From Ku’s blog post:

Wand Labs’ technology and talent will strengthen our position in the emerging era of conversational intelligence, where we bring together the power of human language with advanced machine intelligence — connecting people to knowledge, information, services and other people in more relevant and natural ways.

Terms of the deal have not been disclosed. Regardless, the deal makes sense for Microsoft (MSFT) because much of the Wand’s technology overlaps with what the tech giant hopes to accomplish through its Cortana digital assistant app and newly-created chat bots. During Microsoft’s Build developer conference in March, company executives demonstrated how users could speak to Cortana inside Microsoft’s Skype Internet calling tool and then talk to a chat bot, which could pull off a variety of tasks such as booking hotel rooms or coordinating dessert deliveries.

Wand’s technology and staff seem to have the ability and know-how to pull off similar feats through its own app—at least based upon what’s currently known. The startup has only been around for a few years, and its app hasn’t been thoroughly battle-tested in public to see how well it can pull off what it claims to do. Wand CEO Vishal Sharma said the company will shut down its service, but users should ” expect to see familiar elements of our work in the future.”

It’s likely that the startup’s team possesses the technical chops that Microsoft craves, and users could see those features incorporated into Cortana or the company’s recently created chat bots, which are still a work in progress.

Microsoft experienced a research project hiccup in March when its Tay chat bot went haywire after Internet hooligans inundated Tay with racist, sexist, and other offensive remarks on Twitter. Tay absorbed all that bad mojo, turned around, and began to communicate with other Twitter members using its own distasteful lingo.

For more about Microsoft, watch:

Clearly, communication and related natural language processing technology is difficult to pull off, and Microsoft needs all the talent it can get to achieve its goals as competition heats up from companies interested in pursuing the same goals, including Google (GOOG), Facebook (FB), and Apple (AAPL).

About the Author
By Jonathan Vanian
LinkedIn iconTwitter icon

Jonathan Vanian is a former Fortune reporter. He covered business technology, cybersecurity, artificial intelligence, data privacy, and other topics.

See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Most Popular

placeholder alt text
North America
'I meant what I said in Davos': Carney says he really is planning a Canada split with the U.S. along with 12 new trade deals
By Rob Gillies and The Associated PressJanuary 28, 2026
20 hours ago
placeholder alt text
C-Suite
Fortune 500 CEOs are no longer giving employees an A for effort. Now they want proof of impact
By Claire ZillmanJanuary 28, 2026
1 day ago
placeholder alt text
Real Estate
Ryan Serhant thinks the American Dream was just a 'slogan created by banks,' but it was really about FDR, the Great Depression, and an economic crisis
By Sydney Lake and Nick LichtenbergJanuary 26, 2026
3 days ago
placeholder alt text
Personal Finance
Current price of silver as of Tuesday, January 27, 2026
By Joseph HostetlerJanuary 27, 2026
2 days ago
placeholder alt text
Success
Every U.S. Olympian is going home with $200,000, whether they medal or not, thanks to a billionaire's $100 million gift
By Jacqueline MunisJanuary 28, 2026
14 hours ago
placeholder alt text
Commentary
Yes, you're getting a bigger tax refund. Your kids won't thank you for the $3 trillion it's adding to the deficit
By Daniel BunnJanuary 26, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.


Latest in Tech

NewslettersFortune Tech
Meta gets the love, Microsoft gets smacked
By Alexei OreskovicJanuary 29, 2026
46 minutes ago
Big TechRetail
Amazon is closing its futuristic Go and Fresh stores—showing logistics and tech aren’t enough to make old-school retail work
By Phil WahbaJanuary 29, 2026
3 hours ago
Big TechTesla
Tesla reveals $2 billion investment in Elon Musk’s xAI and officially kills the Model S and Model X
By Jessica MathewsJanuary 28, 2026
10 hours ago
Bald man with glasses and black shirt.
Big TechFortune 500
Microsoft demand backlog doubles to $625 billion thanks to OpenAI, but hefty spending and slower revenue growth spook investors
By Amanda GerutJanuary 28, 2026
10 hours ago
MagazineSamsung
How Samsung’s first-ever chief design officer is reinventing the electronics giant for the AI age
By Nicholas GordonJanuary 28, 2026
12 hours ago
Mark Zuckerberg, chief executive officer of Meta Platforms Inc
AIMeta
Meta beats on Q4 revenue as Mark Zuckerberg predicts a ‘major AI acceleration’ in 2026—with up to $135 billion in capex spending to match
By Sharon GoldmanJanuary 28, 2026
13 hours ago