Microsoft Puts Brakes on AI Spending as Profit Increases 18%
Microsoft recently announced a significant reduction in its AI spending, cutting back by over $1 billion from the previous quarter, despite posting a strong 18% increase in profit. This move comes after a decade of consistently rising investments in AI.
Key Points
- Microsoft’s AI spending decreased to $21.4 billion, marking over a billion-dollar reduction from the last quarter.
- Revenue reached $70 billion, increasing 13% year-on-year, while profits soared to $25.8 billion.
- The company is still on track for more than $80 billion in spending for the current fiscal year ending in June.
- CEO Satya Nadella highlighted the crucial role of cloud and AI in driving business growth and cost-reduction.
- The cutback indicates a potential limit to tech industry spending on AI capabilities.
Why should I read this?
If you’re keeping up with the tech scene, this article is a must-read! Microsoft’s pullback in AI spending while still hitting record profits sends ripples through the industry, suggesting shifts that could impact future investments. Understanding these trends now can save you from getting blindsided later. We’ve done the reading for you, so dive in!