But companies like microsoft? Is their plan to keep plowing tens of billions of dollars into “AI” in hopes of eventually discovering/creating the “next IT revolution”?
Microsoft has roughly a market cap of 3.2 trillion dollar, so while tens of billions certainly isn’t cheap, it also isn’t going all in. I think one has to approach it from a betting perspective. Burning a few billion dollar is certainly not great, but also doesn’t fundamentally hurt the company. Missing out on a major trend on the other hand is something even large companies can’t afford. So it is at least as much about risk management as it is about returns.
Even Zuck eventually stopped burning billions on his metaverse fetish
He hasn’t given up on it though, just maybe scaled back a bit. And honestly in theory i can see the appeal of what he is trying to do. Seems like he is trying to stay ahead and eventually become the default platform for ar/vr devices, similar to microsoft with windows and google with android. So while the costs are huge (and i still don’t quite understand where all that money goes), the reward could be worth it in retrospective, if he succeeds.
Microsoft has roughly a market cap of 3.2 trillion dollar, so while tens of billions certainly isn’t cheap, it also isn’t going all in. I think one has to approach it from a betting perspective. Burning a few billion dollar is certainly not great, but also doesn’t fundamentally hurt the company. Missing out on a major trend on the other hand is something even large companies can’t afford. So it is at least as much about risk management as it is about returns.
He hasn’t given up on it though, just maybe scaled back a bit. And honestly in theory i can see the appeal of what he is trying to do. Seems like he is trying to stay ahead and eventually become the default platform for ar/vr devices, similar to microsoft with windows and google with android. So while the costs are huge (and i still don’t quite understand where all that money goes), the reward could be worth it in retrospective, if he succeeds.