BT Group PLC (LSE:BT.A) invested £30mln in a tech start-up that supports developers specialising in artificial intelligence and cloud computing in the hope of kick-starting its digital transformation.
The FTSE 100 company has taken a stake and board seat in Distributed as part of chief executive Phillip Jansen's attempts to modernise BT.
The telecoms group has come under increasing pressure since its biggest shareholder, Patrick Drahi, upped his stake to 18% in December, sparking speculation a takeover bid was on the horizon.
Jansen has focused on change after becoming frustrated by the amount of bureaucracy at BT, the Telegraph said.
He started the revamp by appointing Harmeen Mehta as chief digital and innovation officer last year.
The investment in Distributed will help "accelerate the digital revolution within BT and help to make it and the UK a key hub for the digital innovation economy,” Mehta said.
BT is in the process of selling its sports TV business, as well as spending £15bn on upgrading 25mln homes and business to full-fibre by 2026.