Microsoft's multi-billion-dollar bet on generative AI isn't paying off as the company expected. Well, at least in the short term. In a not-so-surprising turn of events, shareholders recently sued the software giant, citing that it defrauded them by intentionally overhyping AI (via Reuters).
They further alleged that Microsoft failed to disclose a slump in cloud revenue while continuing to invest billions of dollars in building out AI infrastructure without tangible returns. The complaint was filed in federal court in Seattle by the Michigan-based City of St. Clair Shores Police and Fire Retirement System.
