With the rapid development of generative artificial intelligence technology, Microsoft has recently taken a series of compelling measures in its products and services to deal with high operating costs. The company not only significantly increased the subscription price of Microsoft 365 software, up to 45%, but also launched a product version with advertisements and canceled the rental plans for some data centers. These measures show that Microsoft is actively exploring new profit models to cope with the huge cost pressure brought by AI technology.
Microsoft CEO Satya Nadella mentioned in a recent public speech that although the company has invested a lot of money in AI technology, the actual value brought by these technologies has not yet met expectations. This statement further reveals Microsoft's strategic adjustment in the field of AI, that is, to transfer some operational pressure to consumers by increasing product prices and optimizing cost structure.
The cost issue of generative AI is particularly prominent. Take OpenAI for example. Although the company achieved $3.7 billion in revenue last year, its spending was as high as $9 billion, resulting in a net loss of about $5 billion. The operating costs of OpenAI are mainly divided into two parts: model training and reasoning. As the user base continues to expand, the cost of reasoning continues to rise, which has brought huge financial pressure to major investors such as Microsoft.
As the largest investor in OpenAI, Microsoft is actively seeking ways to reduce AI computing costs. One of the important strategies is to transfer more AI computing tasks to users’ devices, thereby reducing dependence on data centers. This "edge computing" model can not only reduce energy consumption and resource waste, but also improve the level of user privacy protection to a certain extent.
To drive the implementation of this strategy, Microsoft has added dedicated Copilot buttons to its new devices, encouraging users to perform AI processing on their own devices. This design is designed to share AI computing tasks through hardware upgrades, thereby reducing Microsoft's operational burden. However, this strategy also brings potential problems, such as users may need to update devices frequently, resulting in an increase in electronic waste, while hardware differences may also lead to uneven user experience, especially in the field of education, which may exacerbate inequality.
In general, Microsoft is working hard to deal with the high costs of generative AI technology by increasing product prices, launching advertising versions, and optimizing computing models. However, these initiatives may have some impact on consumers in the short term, especially in terms of device updates and user experience. In the future, Microsoft needs to find a better balance between technological innovation and user interests to ensure the sustainable development of its AI strategy.