Will Microsoft’s big roll of the AI dice pay off? – Computerworld

Is Microsoft’s big AI bet a good one?

There is a reason financial markets are leery of companies that invest big in technologies that won’t pay off for years: they might not pay off at all. Technology changes quickly and companies can be fickle in their pursuit of the Next Big Thing. What seems like a sure shot today can turn into a big miss tomorrow. History is rife with examples — just look back at the hype around virtual reality. The payoff for it remains as elusive as ever and may not ever arrive. 

That’s not likely to happen with AI. It’s more likely that the bigger the bet, the bigger the payoff. Virtual reality, after all, has never brought in truly significant amounts of revenue. AI already has, and it’s still in its infancy.

In fact, Microsoft’s earnings were hurt this past quarter because the company can’t keep up with the demand for its AI services. Microsoft CEO Satya Nadella and Hood said on their earnings call that Microsoft could have sold more AI services this quarter if their data centers had the capacity to supply it.