Microsoft Is Spending Big on Artificial Intelligence, but Will It Pay Off?

A big growth opportunity in tech these days is undoubtedly in artificial intelligence (AI). The entire AI market could be worth more than $1.8 trillion by the end of the decade, according to estimates from Grand View Research. That translates into a compound annual growth rate of 36.6%. For tech companies, that mouthwatering level of growth is what helps justify spending heavily on new technologies.But there's also going to be no shortage of competition in the space. And the announcement that ChatGPT maker OpenAI will incur around $5 billion in losses this year despite generating $3.7 billion in revenue underscores how challenging it may be to turn a profit on AI, especially in the short term.One company that's investing heavily into AI these days is Microsoft (NASDAQ: MSFT). Not only has it invested in OpenAI, but it's also spending money on enhancing its products and services with AI capabilities. How big of a payoff that will have on its bottom line, however, is certainly debatable.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool