Microsoft Makes a Big Move Into AI-Driven Healthcare

American tech giant Microsoft  (MSFT) – Get Microsoft Corporation Report has made a major push into artificial intelligence this week, closing its deal to acquire AI pioneer Nuance Communications Inc.

The buyout will cost Microsoft $19.7 billion in an all-cash deal, and the company will take all of Nuance’s net debt as part of the terms.

So why is the Seattle-based behemoth splashing out for Nuance in a volatile market and into an already-crowded sector?

The short answer is because Nuance’s technology, which includes electronic health records, virtual assistance and a host of other health care simplifying tools are projected to bring Microsoft’s share of the total addressable market to $500 billion.