Industrial conglomerate 3M (NYSE: MMM) announced a new collaborative agreement with Microsoft (NASDAQ: MSFT) on Wednesday, aimed at jointly advancing artificial intelligence (AI) infrastructure. The news provided a boost, with 3M's stock price rising more than 3% in early Wednesday trading.

According to a joint statement, the partnership will combine Microsoft's digital and hyperscale cloud infrastructure capabilities with 3M's expertise in materials science and precision manufacturing. This collaboration is intended to accelerate the application of AI technology and strengthen the physical network infrastructure required to support the growth of cloud computing and AI workloads.

A key component of this agreement involves Microsoft becoming the first hyperscale cloud service provider to adopt 3M's Expanded Beam Optical (EBO) light connection technology. Compared to traditional connectors that require direct fiber end-face contact, the EBO system uses a non-contact optical interface. This design is expected to speed up equipment installation, offer greater resistance to contamination, reduce maintenance needs, and ultimately enhance the reliability and operational efficiency of data center networks.

"Microsoft is redefining the underlying architecture for cloud and AI infrastructure, combining our own innovations with the technological advancements of partners like 3M to build data centers that deploy faster, are more resilient, and can meet the demands of AI at scale," said Cliff Henson, Corporate Vice President of Cloud Supply Chain at Microsoft.

He added that 3M's EBO solution will further improve data center performance, reliability, and operational efficiency, providing customers with a more dependable, sustainable, and advanced environment for running cloud computing and AI workloads.