{"id":513278,"date":"2026-04-04T22:58:11","date_gmt":"2026-04-04T22:58:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/513278\/"},"modified":"2026-04-04T22:58:11","modified_gmt":"2026-04-04T22:58:11","slug":"ai-is-killing-microsoft","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/513278\/","title":{"rendered":"AI Is Killing Microsoft"},"content":{"rendered":"<p class=\"article-paragraph skip\">Sign up to see the future, today<\/p>\n<p class=\"article-paragraph skip\">Can\u2019t-miss innovations from the bleeding edge of science and tech<\/p>\n<p class=\"pw-incontent-excluded article-paragraph skip\">OpenAI made headlines this year after <a href=\"https:\/\/futurism.com\/artificial-intelligence\/openai-cutting-projects\" rel=\"nofollow noopener\" target=\"_blank\">announcing<\/a> it was giving up on what one exec categorized as distracting \u201cside quests,\u201d <a href=\"https:\/\/futurism.com\/artificial-intelligence\/openai-fumbled-1-billion-deal-disney\" rel=\"nofollow noopener\" target=\"_blank\">including its Sora text-to-video app<\/a>, to double down on enterprise and coding, which are lucrative revenue drivers that could stop the company from hemorrhaging billions of dollars a quarter.<\/p>\n<p class=\"article-paragraph skip\">Many saw the moves as an effort to catch up with competitor Anthropic, whose Claude Code and Claude Cowork have made major headway this year.<\/p>\n<p class=\"article-paragraph skip\">Meanwhile, Microsoft\u2019s AI assistant Copilot is struggling to gain traction, causing the tech giant to fall strikingly behind in the AI race. As <a href=\"https:\/\/www.cnbc.com\/2026\/03\/31\/microsofts-stock-closes-worst-quarter-since-2008-financial-crisis.html\" rel=\"noreferrer nofollow noopener\" target=\"_blank\">CNBC reports<\/a>, the company just closed out its worst quarter stock performance since the 2008 financial crisis, with shares sliding over 20 percent so far this year.<\/p>\n<p class=\"article-paragraph skip\">While shares have rebounded somewhat over the last week, its slumping shares have wiped out all gains since roughly the same time last year. It\u2019s a terrible look.<\/p>\n<p class=\"article-paragraph skip\">Microsoft has made massive investments in data centers and building out its Azure cloud AI infrastructure, but is struggling to efficiently scale up its Copilot assistant without sending expenses soaring.<\/p>\n<p class=\"article-paragraph skip\">Then there\u2019s the major backlash to its Windows team stuffing the operating system with AI features nobody asked for, <a href=\"https:\/\/futurism.com\/artificial-intelligence\/microsoft-bans-word-microslop-discord-lock\" rel=\"nofollow noopener\" target=\"_blank\">garnering it the pejorative nickname<\/a> of \u201cMicroslop.\u201d<\/p>\n<p class=\"article-paragraph skip\">\u201cRedmond is in a pickle,\u201d Melius Research analyst Ben Reitzes wrote in a note last week, referring to the Washington state city where Microsoft is headquartered.<\/p>\n<p class=\"article-paragraph skip\">The tech giant has been swept up in a much broader market phenomenon dubbed the \u201cSaaSpcalypse\u201d this year, with software-as-a-service companies getting hammered by ongoing sell-offs. Panicked investors are afraid AI coding tools could make their often costly services redundant by allowing firms to develop their own in-house tools from scratch instead.<\/p>\n<p class=\"article-paragraph skip\">\u201cMuch of traditional SaaS is dying\/in likely terminal decay,\u201d investor Jason Lemkin <a href=\"https:\/\/x.com\/jasonlk\/status\/2038470471142813812\" rel=\"nofollow noreferrer\" target=\"_blank\">tweeted<\/a> amid the panic.<\/p>\n<p class=\"article-paragraph skip\">Despite its horrible stock market performance, Microsoft is still minting plenty of cash, with <a href=\"https:\/\/www.cnbc.com\/2026\/01\/28\/microsoft-msft-q2-earnings-report-2026.html\" rel=\"noreferrer nofollow noopener\" target=\"_blank\">reported revenues growing almost 17 percent<\/a> in the first quarter of this year, compared to the same period last year.<\/p>\n<p class=\"article-paragraph skip\">Yet some analysts remain bearish on the company\u2019s performance, particularly when it comes to increasingly steep competition in the AI space.<\/p>\n<p class=\"article-paragraph skip\">\u201cThere is concern that the Microsoft 365 Copilot business has not lived up to quite their expectations, and that\u2019s an area that could see new competitors,\u201d Harding Loevner analyst Kyle Levins told CNBC.<\/p>\n<p class=\"article-paragraph skip\">Microsoft finds itself in a difficult situation. While its Azure cloud business remains a hot commodity among AI companies, including OpenAI and Anthropic, it\u2019s struggling to gain much traction with its own AI tools.<\/p>\n<p class=\"article-paragraph skip\">Its ambitions remain as grand as ever, though. As <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-04-02\/microsoft-aims-to-create-large-cutting-edge-ai-models-by-2027\" rel=\"noreferrer nofollow noopener\" target=\"_blank\">Bloomberg reported<\/a> on Thursday, the company is pushing the development of its own in-house AI models, which could be ready by next year.<\/p>\n<p class=\"article-paragraph skip\">\u201cWe must deliver the absolute frontier,\u201d Microsoft\u2019s AI chief Mustafa Suleyman told the broadcaster. \u201cCertainly by 2027, the objective is to really get to state-of-the-art.\u201d<\/p>\n<p class=\"article-paragraph skip\">But given waning enthusiasm and growing \u201c<a href=\"https:\/\/www.marketwatch.com\/story\/microsofts-stock-has-been-plagued-by-apathy-can-it-excite-wall-street-once-more-ae73a6f9\" rel=\"noreferrer nofollow noopener\" target=\"_blank\">apathy<\/a>\u201d for the tech giant on Wall Street, the company may struggle to convince investors of its long-term vision.<\/p>\n<p class=\"article-paragraph skip\">More on Microsoft: <a href=\"https:\/\/futurism.com\/microsoft-ceo-concerned-ai-destroy-company\" rel=\"nofollow noopener\" target=\"_blank\">Microsoft CEO Concerned AI Will Destroy the Entire Company<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Sign up to see the future, today Can\u2019t-miss innovations from the bleeding edge of science and tech OpenAI&hellip;\n","protected":false},"author":2,"featured_media":513279,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[554,733,4308,86,56,54,55],"class_list":{"0":"post-513278","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-technology","12":"tag-uk","13":"tag-united-kingdom","14":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/513278","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=513278"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/513278\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/513279"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=513278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=513278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=513278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}