Microsoft's CFO, Amy Hood, is urging employees to stay focused amid recent AI developments that have raised concerns about the company's spending on artificial intelligence. Hood's message comes as Microsoft faces growing competition from AI startups like DeepSeek, which has developed a cost-efficient AI model that's challenging traditional approaches to AI development.
In an internal memo, Hood reminded employees that Microsoft's focus is on delivering real-world AI solutions while scaling its cloud and AI infrastructure to support customers. She emphasized the importance of priorities like security, quality, and AI innovation.
The memo was sent amid concerns from investors about Microsoft's AI spending, particularly in light of DeepSeek's emergence and OpenAI's participation in the $500 billion Stargate project. Microsoft has invested heavily in OpenAI, with a commitment of nearly $14 billion, but OpenAI's diversification efforts have raised questions about the long-term sustainability of Microsoft's AI investments.
Despite these challenges, Microsoft remains committed to its AI-first cloud strategy, with a focus on delivering cutting-edge AI capabilities to customers. The company has also taken steps to diversify its AI investments, backing companies like Anthropic and Mistral AI.
