The companies will be focused on "getting the platform right," which will open up the possibility of a wide range of telematics programs built by Toyota or companies that partner with the car maker, Microsoft CEO Steve Ballmer said.

Even though the companies said the cloud platform wouldn't be completed until 2015, they said the first applications would become available in cars sold next year.

Microsoft's investment in the project includes tech support as well as cash, Ballmer said, although he did not say what portion of the $12 million would come from his company.

He said the benefit to Toyota of working with Microsoft's Azure service is that the car company can offer the services in many markets and will pay only for what is used. "Historically this type of service was limited only to the major markets where the operator could build and maintain a data center," Ballmer said. "Toyota will have the benefit of paying for only the computing power used while scaling to support spikes in demand or entry into new markets."

Toyota is testing in Japan the Toyota Smart Center, a project that "links people, automobiles and homes for integrated control of energy consumption," according to the company. Such systems will rely more on telematics for achieving energy efficiencies, Toyota said. The company has a strong interest in smart grid systems because it needs to develop recharging systems and networks for future electric cars.