From CPO Magazine
New Technology, Same Story: Microsoft’s Anticompetitive AI Tactics
By Steven Weber
The AI race is on a hot streak and nowhere more so than in the hypercompetitive technology and financial markets. This level of competition is exactly what’s needed to generate profound innovation. Customers reward the best companies and models, and less effective and popular competitors fall behind quickly and ruthlessly.
Technology companies from Meta to Amazon to Alphabet are making major investments to remain relevant in the AI race, with more than $660 billion in total AI spending planned for 2026. Microsoft’s investments in particular are eye-popping—including $37.5 billion in its last financial quarter.
However, Wall Street is now demanding evidence of product uptake and pathways to profitability—and Microsoft is stumbling. The company’s latest earnings report led to a large drop in share prices, as investors and analysts raised concerns about its massive spending on AI infrastructure without the kinds of tangible returns that a really valuable product should demonstrate...
Steven Weber is an emeritus professor of the School of Information.
