Microsoft has made an undisclosed equity investment in Veeam Software as part of an expanded partnership to develop AI-powered data protection tools.

The deal will strengthen Veeam's ability to help customers recover data after cyberattacks, ransomware incidents, or accidental loss. The company's core technology ensures immutable backups, preventing hackers from modifying or deleting critical files.

With Microsoft's support, Veeam plans to enhance research and development, integrate AI-driven capabilities into its software, and expand design collaboration.

The move follows Microsoft's previous investment in cybersecurity firm Rubrik, another company specialising in data backup and recovery.

Veeam, which was acquired by private equity firm Insight Partners for$5 billion in 2020, was valued at$15 billion after a secondary sale last year.

Founded in 2006, Veeam serves over 550,000 customers globally, including major corporations such as Deloitte and Canon. The partnership with Microsoft underscores the growing demand for advanced data security solutions as businesses face increasing cyber threats.