Microsoft CFO tells employees to ‘focus’ as DeepSeek release raises questions on AI spending: Report

A particular case is the joint venture by Microsoft-backed OpenAI, Oracle, and SoftBank called Stargate which would spend $500 billion on AI infrastructure

Published on: Jan 30, 2025, 12:26:03 IST

By HT News Desk | Edited by Abhyjith K. Ashokan

Prefer HTon Google

Share via

Copy link

Microsoft chief financial officer (CFO) told employees in an internal memo to keep their heads down and focus, according to a Business Insider report.

Kevin Scott, executive vice president of AI and chief technology officer of Microsoft Corp., right, and Sam Altman, chief executive officer of OpenAI, at the Microsoft Build event in Seattle, Washington, US, on Tuesday, May 21, 2024. The event allows attendees to grow their skills in topics such as building copilots, generative AI, securing applications, cloud platforms, and low-code (Chona Kasinger/Bloomberg)

Also Read: Man's visa stress vanishes after he realises this about Perplexity AI’s Indian-origin CEO

This comes as Chinese artificial intelligence (AI) startup DeepSeek's new model got launched, competing with the Microsoft-backed OpenAI at a fraction of the cost.

This ended up raising questions from investors about the possibility of returns from AI due to the huge spending by other tech giants on it.

A particular case is the joint venture by OpenAI, Oracle, and SoftBank called Stargate which would spend $500 billion on AI infrastructure.

Also Read: ‘Pretty terrified by the pace of AI development’: OpenAI researcher quits, claims labs are taking ‘very risky gamble’

Even Microsoft plans to invest $80 billion into this in 2025 alone.

"There has been a lot of AI-related news this week, but our focus is clear: delivering real-world AI solutions while simultaneously globally scaling our cloud and AI infrastructure to support our partners and customers as they adopt, build, and grow as well," the report quoted Hood as writing in her email.

“As a company, we remain steadfast in the priorities which are required to deliver on that product promise — security, quality, and AI innovation. Thank you for your focus as we work together for our customers who rely on us,” she added

Also Read: Amid challenge from Chinese AI, Altman plans to visit India: Report

Hood sends the emails quarterly whenever Microsoft reports its earnings. This time, it reported its AI and cloud computing services grew less than expected. As a result, the company's stock also dropped.

The stock price fall also comes as a result of Deepseek's AI which ended up tanking even the tech-heavy Nasdaq Composite Index.

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

Stay updated with the latest Business News on Petrol Price, Gold Rate, Silver Rates, Diesel Prices along with Income Tax Calculator