Microsoft is mobilizing 6,000 employees to form a new department to help customers adopt artificial intelligence.
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Microsoft is laying off 4,800 employees, with Xbox accounting for approximately 3,200 of the job cuts.
According to Mars Finance, Microsoft announced it will cut 4,800 jobs, approximately 2.1% of its global workforce. The Xbox gaming division is the hardest hit, with 1,600 jobs laid off on July 6th and another 1,600 expected to be cut this fiscal year, totaling about 3,200 positions. Asha Sharma, who took over as Xbox CEO in February, admitted to employees that the business is currently unhealthy, stating that Xbox's profit margin is three to ten times lower than comparable platforms and publishing businesses, and rising component costs have intensified competition with Sony's PlayStation and Nintendo's Switch. Microsoft will also spin off four previously acquired studios: Compulsion Games and Double Fine will operate independently, while Ninja Theory and Undead Labs will be transferred to new owners, partially reversing the gaming empire built three years ago with its $69 billion acquisition of Activision Blizzard. Chief People Officer Amy Coleman stated that the company launched a buyout program in April, and over one-third of eligible employees accepted. Microsoft's stock price has fallen by about 19% in the past six months.
US Senator Warren pressures the US Department of Defense and artificial intelligence companies to disclose contract information.
According to Odaily Odaily, market sources indicate that US Democratic Senator Warren is pressuring the US Department of Defense and artificial intelligence companies to disclose contract information. (Jinshi)
Microsoft will lay off 6,400 employees, half of whom will be from the restructuring of its Xbox gaming division.
PANews reported on July 6th that Microsoft (MSFT.O) will lay off 6,400 employees, half of whom will be laid off due to the restructuring of its Xbox gaming division. The layoffs represent approximately 2.8% of its total workforce. Microsoft will also sell five studios, including Compulsion and DoubleFine.
Microsoft is building a new team of approximately 6,000 people to help businesses deploy artificial intelligence at both the technology and strategic levels.
According to Beating's monitoring, Microsoft is assembling a new team of approximately 6,000 people dedicated to assisting enterprises in deploying artificial intelligence at the technical and strategic levels. Team members come from engineering, corporate training, management, and vertical industry backgrounds, and will be more deeply involved in client projects, helping to optimize model selection, reduce the cost of AI usage, and in turn influence Microsoft product iterations. Traditionally, such low-margin implementations are mostly handled by consulting firms, but in the AI phase, vendors including Palantir, Salesforce, and OpenAI have begun to send engineers to their clients, and Amazon Cloud announced a similar initiative this week. --------------------------------- Click the original link below to join Beating's AI news channel on Lark, monitoring global AI hotspots and news 24/7.
ING: Nvidia's profit margins are threatened by customers developing their own chips.
According to Mars Finance, on July 7th, Jan Frederik Slijkerman of ING wrote in a report that Nvidia's ability to maintain profit margins is uncertain as tech giants develop their own chips. He pointed out that major customers such as Microsoft, Alphabet, and Amazon are developing their own custom chips to help control AI infrastructure costs (capital expenditure efficiency). He stated that, therefore, Nvidia's pricing power may face more intense competition than in recent years, making it more difficult for it to maintain its currently extremely high profit margins in the long term, despite the company's expansion into new business lines.
Tesla is reportedly controlling the cost of using AI, limiting employees to no more than $200 per week.
According to Beating, The Information reported that Tesla (TSLA.O) recently notified employees that, starting July 6th, the company will cap internal AI computing power and model usage spending at $200 per week, with any excess requiring approval. Previously, engineers' weekly AI usage costs often reached thousands of dollars. Over the past six months, the company has been promoting its unified AI platform, "Bottle Rocket," integrating models from OpenAI, Anthropic, and xAI, and gradually shifting from decentralized use to company-wide management. However, while promoting AI for customer service, sales, and automation processes, cost pressures have quickly emerged, prompting the company to tighten its budget. This change reflects a shift in many companies from encouraging AI adoption to controlling costs. Companies like Meta, Uber, and Walmart have also tightened their AI budgets. This is significant for Tesla, as Musk has emphasized that the company's future value depends on AI products such as Robotaxi and Optimus robots, rather than traditional car sales. Tesla's revenue has stagnated for two consecutive years. --------------------------------- Click the original link below to join the Beating · Lark AI news channel and monitor global AI hot topics and news 24/7.