Microsoft Faces Investor Concerns Over AI Investments and Copilot Adoption

As Microsoft prepares to report its quarterly earnings, questions arise about the slow returns on AI spending and the tepid reception of its Copilot tool.

• Microsoft is expected to report its slowest quarterly revenue growth in a year, with projected revenue of $64.51 billion for the quarter.
• Investors express concerns over the high capital expenditures on AI, including a $13 billion investment in OpenAI, amid slow adoption of AI products like Copilot.
• Despite efforts to boost Copilot's uptake, a Gartner survey found that most IT companies have not moved beyond the pilot stage with the tool.
• Microsoft's stock has underperformed the S&P 500, rising only 1% since July, while capital spending surged 71.7% to $19.23 billion in the last quarter.
• CEO Satya Nadella saw a 63% increase in total compensation, despite a salary cut, as the company continues to invest heavily in AI infrastructure.

4 Articles

TechSpot Quartz Investopedia