Podcasts News GeekWire Microsoft's big bet on the AI economy

Microsoft's big bet on the AI economy

Published: July 22, 2023, 2:01 p.m.

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Microsoft staked its financial claim in the AI gold rush this week, announcing the pricing for its upcoming Microsoft 365 Copilot technology: a whopping $30/user per month on top of its existing enterprise subscription license fees.

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Wall Street loved it. One analyst called it "eye popping." Investors sent the company\'s shares to a new record on the day the pricing was announced.

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The upcoming product, fueled by Microsoft and OpenAI technologies, is designed to integrate with Microsoft productivity apps and work with internal business data, going beyond the capabilities of web-based generative AI technologies.

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But will companies see that much value in what Microsoft has to offer? Microsoft 365 Copilot is still in private preview, for now, but the pricing suggests that the company likes what it\'s seeing and hearing from early users.

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It\'s part of a big week that also saw the company clear a major hurdle in its $69 billion Activision-Blizzard acquisition, winning a key court ruling and giving itself an extra three months of breathing room to complete the blockbuster gaming deal.\\xa0

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But behind the scenes, Microsoft is grappling with shaky morale amid ongoing cutbacks, and growing questions about the gap between employee and executive compensation. Meanwhile, a high-profile U.S. government breach by a Chinese hacking group is raising new questions about the security of Microsoft products, and threatening to undermine a growing source of revenue for the company.

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It\'s shaping up as one of the biggest years in Microsoft history, and this was perhaps the biggest week of the year so far for the company. Next up: Microsoft will make its quarterly earnings report on Tuesday.\\xa0

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Stories discussed on this week\'s show:\\xa0

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