Microsoft is set to acquire software company MetalPeeling and move it to Amazon and search giant Google.
The deal is valued at $2.5 billion, according to people familiar with the matter.
The transaction was first reported by The Wall Street Journal.
The software company has a product that helps manufacturers remove metals from products.
MetalPeeling provides software to help manufacturers remove metal from products, including some metal-containing plastics, metal-contaminated wood and metal-reinforced concrete.
The company also helps companies remove toxic metals from oil and gas pipelines.
A company spokesperson declined to comment.
Google is looking to buy the software business in an effort to strengthen its search engine.
The search company has been struggling to keep up with Amazon’s growth.
Google recently said it would buy a minority stake in Bing for $1.85 billion.