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Starbucks Builds In-House AI Tools to Cut Reliance on Microsoft, IBM

Starbucks is developing its own artificial intelligence tools to replace software currently purchased from Microsoft and IBM, as part of a $2 billion cost-reduction initiative.

July 9, 2026
2 min read
Source: Stocktwits
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Key Numbers

cost savings
2B

Starbucks (SBUX) announced plans to develop proprietary artificial intelligence tools to replace software it currently buys from Microsoft (MSFT) and IBM (IBM). The move is part of a sweeping $2 billion cost-reduction initiative.

The Product

Starbucks is building AI tools tailored to improve internal operations such as inventory management and customer service. These tools aim to reduce reliance on external vendors and achieve cost savings.

Pricing and Availability

Starbucks has not yet announced a launch date or pricing details, as the tools are still under development.

Competition

Starbucks competes with major tech companies like Microsoft and IBM, which currently provide similar solutions. By developing its own tools, Starbucks can cut costs and gain more control over its operations.

Potential Impact on the Company

The move is expected to improve long-term profitability margins, especially if Starbucks successfully reduces its dependence on external suppliers. It may also foster internal innovation.

Frequently Asked Questions

To reduce reliance on Microsoft and IBM as part of a $2 billion cost-reduction plan.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.