When done shopping, users simply walk out and Amazon automatically bills their credit card.
At Amazon Go, shoppers check in by scanning their unique QR code while overhead cameras work with weight sensors in the shelves to precisely track which items they pick up and take with them.
Amazon finally opened its first automated Go store in Seattle last January, following a lengthy beta phase during which time it was only open to select Amazon employees.
As Reuters reports, Microsoft isn't looking to open its own automated grocery stores, but it wants to be the company behind the scenes running the operation. Some have tested programs where customers scan and bag each item as they shop, with mixed results.
For Microsoft, becoming a strategic ally to retailers has meant big business. Gene Munster, a veteran Wall Street analyst and head of Loup Ventures, told Reuters that the future of checkout is cashierless.
The automated checkout market could be worth $50bn (£37.5bn) in the USA alone, venture capital firm Loup Ventures estimated.
I've asked Microsoft for comment on the Reuters report.
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AVA's Hirpara declined to disclose if his company has any ongoing talks with Walmart.
Microsoft's effort to date has largely fallen under its Business AI, or artificial intelligence, team, one person said.
In a meeting with the team several months ago, Nadella recommended an "intelligent edge" device that could manage connected gadgets such as cameras on site with minimum data transfers to the cloud, which would cut down on costs, said the person. One source revealed that making the technology cheap enough to interest retailers is a "major challenge" for Microsoft.
Microsoft already showcases the basics for automated checkout at its Retail Experience Centre in Redmond.
The company also has retail/point-of-sale solutions that it markets through its Dynamics 365 for Retail software and service offerings. Amazon Go customers can shop for a bevy of food items, including pre-made salads and sandwiches, snacks, beer, wine and other beverages. They also studied novel ways for smartphones to play a role in the shopping experience.
Still, the industry is playing catch-up to Amazon. Amazon Go runs on Amazon Web Services, uses an Amazon app, attracts people Amazon already counts as customers, and relies on a delivery network for restocking that Amazon already has in place.