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The original was posted on /r/microsoft by /u/NuseAI on 2024-08-02 19:07:01+00:00.
- Microsoft has invested a staggering $19 billion in cash capital expenditures and equipment, mostly related to AI.
- Despite the massive spending, the company has yet to see significant revenue from AI.
- Other major tech companies are also heavily investing in AI infrastructure, with Google expected to spend $49 billion by the end of the year.
- Analysts are concerned about the lack of immediate returns on these investments, with some predicting potential cash flow issues for companies like OpenAI.
- Microsoft’s CEO defended the spending, stating that it was justified based on the company’s ‘demand signal’ and long-term monetization plans.
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