""They reordered the division for Copilot, and now they have the guy that was running it working on models. That's a red flag," Wright said, referring to Mustafa Suleyman, who had been leading the Copilot effort."
""To put that in context, Microsoft has spent billions building and marketing Copilot as the AI layer across its entire product stack, from Word and Excel to Teams and Azure. Penetrating roughly 3% of its own user base after all that investment is not a success story.""
""With Mustafa now focused on building models, Wright argues Microsoft will need to spend more building its own models because 'sharing IP with OpenAI is not working out too well.'""
Microsoft's stock has dropped over 20% year-to-date, primarily due to issues with its Copilot initiative. Analyst Ben Wright highlights a troubling executive reshuffle, moving the leader of Copilot to focus on models, indicating deeper problems. Adoption rates are low, with only 15 million Copilot seats sold out of 450 million users, suggesting a lack of product-market fit. Additionally, increased spending on R&D and capital expenditures raises concerns for investors about the company's financial health and future growth prospects.
Read at 24/7 Wall St.
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