Interested in application software? Well, I have some news for you. On Tuesday, October 10, Microsoft Ventures – owned by Microsoft Corp. (NASDAQ:$MSFT) – announced a new AI competition for startups called Innovate AI. The prize? $3.5 million in investments into whoever wins.

Microsoft Ventures will partner with Notion Capital, Vertex Ventures, and Madrona Ventures Partners to host the competition.

Here’s what we know about the competition:

– The competition is looking for early-stage AI startups in Europe, Israel, and North America.

– The Innovate AI competition will award $1 million in funding to one startup per region.

– There will also be a $500,000 “AI for Good” prize.

– All of the prizes will come with $500,000 in Azure credits.

Microsoft’s executive VP of business development Peggy Johnson is in charge of the company’s strategic investments through Microsoft Ventures. She informed TechCrunch that the Redmond, Washington-based company prefers to invest in later-stage companies, but Microsoft Ventures gives it the ability to make early-stage investments, too.

“The idea behind the competition is that we want to see the earliest stage for innovators – maybe ones that didn’t pop up yet or on anyone’s radar,” Johnson said.

It’s important to mention the Innovate AI competition isn’t just about cash prizes. Instead, Microsoft will invest into these companies.

The Innovate AI competition is open for applications and you have until December 31 to apply.  

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