Microsoft’s heavy investment in AI sparks concern among investors


What you need to know

  • Microsoft’s heavy investment in AI projects is raising concern among investors.
  • Its Azure cloud business’ growth remained steady quarter-over-quarter at about 31% between April and June, despite Microsoft’s significant investment.
  • Microsoft says it needs to continue investing in data centers to meet the ever-growing and high demand for AI.

Microsoft’s recent shift and absolute focus on AI has raised concern among its investors. The tech giant ventured into the AI landscape face-first after investing billions of dollars in OpenAI to further extend their complicated partnership.

“Microsoft Copilot and Copilot stack are orchestrating a new era of AI transformation, driving better business outcomes across every role and industry,” indicated Microsoft CEO Satya Nadella during the company’s earnings call for FY24 Q3. Admittedly, the company reported revenue increases (up 17%), operating income (up 23%), net income (up 20%), and diluted earnings per share (up 20%). 





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