In an internal memo, Microsoft Chief Financial Officer (CFO)
urged employees to remain focused amidst growing scrutiny over AI investments,
as reported by Business Insider.
The message comes at a time when DeepSeek, a Chinese
artificial intelligence (AI) startup, has introduced a new model, positioning
itself as a cost-effective rival to OpenAI, which is backed by Microsoft. This
development has fueled concerns among investors about the sustainability of
high AI expenditures across the tech industry.
One notable example is Stargate, a joint initiative
involving OpenAI, Oracle, and SoftBank, which is expected to allocate a
staggering $500 billion toward AI infrastructure. The immense scale of such
investments has prompted questions regarding potential returns and long-term
profitability.
Hood, Microsoft's CFO, reaffirmed the company’s commitment
to core priorities, emphasizing security, quality, and innovation in AI. She
thanked employees for their dedication, underscoring the importance of
delivering value to customers who depend on Microsoft's products and services.
Microsoft issues quarterly internal communications alongside
earnings reports. This time, the company reported AI and cloud computing growth
below expectations, contributing to a decline in its stock price. The impact
was further compounded by DeepSeek’s entry into the market, which coincided
with broader losses in the Nasdaq Composite Index, heavily influenced by the
tech sector.