Microsoft sued by shareholders over expenses, cloud business, AI
Shareholders sued Microsoft for allegedly defrauding them by hiding slowing Azure growth and AI infrastructure costs.Summary
A Michigan pension fund has filed a proposed class action lawsuit against Microsoft in Seattle federal court, alleging that the company defrauded shareholders by failing to disclose slowing growth in its Azure cloud business and the need to spend billions on AI infrastructure. The lawsuit claims this omission inflated the stock price, leading to a 10% drop and the loss of $357 billion in market value after the January 29 earnings report. Microsoft, led by CEO Satya Nadella and CFO Amy Hood, has denied the claims, stating they are "without merit" and vowing to defend itself. The case highlights the company's aggressive investment in AI, including its partnership with OpenAI and the development of the Copilot chatbot, which the lawsuit attributes to the financial pressures.
(Source：Rappler)