Microsoft Makes Big Bet on Health-Care AI Technology With Nuance

Microsoft Corp. is making a massive bet on health-care artificial intelligence.

The software giant is set to buy Nuance Communications Inc., tapping the company tied to the Siri voice technology to overhaul solutions that free doctors from note-taking and better predict a patient’s needs. Microsoft may announce the deal as soon as Monday if talks are successful, according to people familiar with the matter.

The price being discussed could value Nuance at about $56 a share, a 23% premium to Friday’s close, said one of the people, who asked not to be identified because the information is private. Set ...