Microsoft is cutting 4,800 jobs and overhauling its Xbox gaming business in what its new gaming CEO calls the biggest restructuring in Xbox history, while reshaping its sales and consulting division amid record AI spending and a 30% stock slide.

Microsoft CEO Satya Nadella says streamers playing Xbox games make more money than the 25-year-old gaming company.

CEO Satya Nadella on the April earnings call reframed the entire debate over how quickly generative AI can turn into a real profit-and-loss line. The company’s AI business now operates at scale, and the growth rate suggests the ramp is still in its early innings.

Microsoft has spent years placing Copilot across Windows and Office, yet fewer than 4.5% of commercial Microsoft 365 customers pay for it and far fewer return weekly.

Microsoft is the latest Silicon Valley giant to cut back on its AI spending.

Microsoft (NASDAQ:MSFT | MSFT Price Prediction) has quietly built a $37 billion AI business, yet the stock has done the opposite of what you would expect. Shares of Microsoft closed at $390.49, down 18.

Microsoft is reportedly ditching OpenAI's and Anthropic's AI models in favor of its own to cut costs - SiliconANGLE

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