Microsoft’s AI Bet Backfires | US News

Big Tech is pouring billions into AI — Microsoft alone spent over $700 billion this year — but the pressure’s on to turn a profit. After a brutal stock drop and massive Azure spending, Microsoft’s announcing layoffs, admitting its gaming division needs a reset, and even raising Xbox prices due to soaring memory chip costs. With AI automation threatening their software profits and Xbox revenue falling despite $20 billion in investments, Microsoft is now seriously considering spinning off or restructuring its gaming business. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/8f35e999fed30117