After Microsoft Layoffs, Satya Nadella shared his vision on AI’s real value
Artificial Intelligence is now at the center of the tech world, but it also comes with a big cost. Microsoft CEO Satya Nadella has shared a new thought about the future of AI. He said that if AI needs this much energy, then the reason behind it must also be strong. Nadella spoke about this at Y Combinator’s AI Startup School. He said, “If you are using energy, there should also be some social value behind it. Just consuming resources is not enough.”
Microsoft removed over 6,000 employees, more layoffs likely in July
With increasing focus on AI, Microsoft has removed more than 6,000 employees in the past year excluding 650 Xbox Employees. The company called this move “organizational changes” aimed at keeping the company competitive in the market. But insiders say that there is a plan for another big layoff in July, which could affect the Xbox division.
These layoffs are part of internal changes that Microsoft is making because of its AI and cloud strategy. In 2023, when Microsoft bought Activision Blizzard for $69 billion, pressure from shareholders on the company also increased. Now Microsoft is focusing on cost-cutting and is investing in AI and gaming more aggressively.
The real test of AI: Can it solve real life problems?
Nadella gave a simple example to explain AI’s impact. He said that in America’s healthcare system, even a small task like hospital discharge, if done using AI, can save time, money and energy. He said that AI will be considered successful only when it makes daily life tasks like education, healthcare and paperwork easier.
Microsoft is one of the biggest companies in the world in building Artificial Intelligence infrastructure. A report says that in 2023, Microsoft used nearly 24 terawatt-hours of electricity, which is equal to the yearly usage of a small country. That is why Satya Nadella’s words are even more important that AI should only grow if it creates real value for society.
AI’s future or challenge of job loss?
Microsoft has worked with OpenAI to push its AI goals strongly. But this future-driven approach also has a harsh reality, which is loss of human jobs. The company has often said these changes are necessary for business success. But when the cost of this success is such a large number of lost jobs, then questions are obvious.
If layoffs happen in the Xbox division in July, it will be Microsoft’s fourth major layoff round in the past 18 months. This clearly shows that the company is trying to balance between investing in future technology and cutting costs.
Are we losing our present while building the future of technology?
Microsoft’s layoffs and AI-driven transformation bring us to a big dilemma. On one side, AI promises new innovations and ease in the world. On the other side, there are people whose careers and lives are at risk because of this transformation. Satya Nadella’s vision is clear AI should only grow when it creates real and measurable value. But as long as AI is connected with human loss, questions will keep coming.
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