Latest news with #CleanViewEnergy
Hans India
18 hours ago
- Business
- Hans India
Satya Nadella Urges AI to Serve Real Needs as Microsoft Faces Job Cuts and Energy Concerns
As artificial intelligence continues to redefine the tech industry, Microsoft CEO Satya Nadella is calling for a more grounded and socially responsible approach. Speaking at Y Combinator's AI Startup School, Nadella emphasized that AI must go beyond flashy demonstrations and instead focus on solving real-world problems that impact everyday lives. 'The real test of AI,' Nadella said, 'is whether it can help solve everyday problems — like making healthcare, education, and paperwork faster and more efficient.' This call for pragmatism arrives at a pivotal moment for Microsoft. The tech giant recently laid off more than 6,000 employees, citing AI-driven organisational restructuring. While the company maintains that the changes are essential to thrive in an increasingly competitive and evolving marketplace, the human cost of such transformations cannot be ignored. In his address, Nadella didn't shy away from the deeper implications of the AI boom — particularly its environmental impact. Highlighting the substantial energy demands of large-scale AI systems, he warned that the industry must be ready to justify its consumption. 'If you're going to use energy, you better have social permission to use it,' he said. 'We just can't consume energy unless we are creating social and economic value.' According to a 2023 report by Clean View Energy, Microsoft consumed nearly 24 terawatt-hours of electricity in a single year — an amount comparable to that used by a small nation. With AI infrastructure now a central pillar of its business strategy, the pressure is on Microsoft to ensure that this power usage yields tangible benefits. Nadella offered the American healthcare system as a key example of where AI could make a real difference. He pointed to hospital discharges as a process that could be vastly improved with AI-driven solutions, reducing delays, cutting costs, and streamlining administration. 'A simple thing like hospital discharge — if done with an AI model — can save time, money, and energy,' he noted. Despite this optimism, the transformation is not without its difficulties. The recent job cuts reflect broader corporate changes as Microsoft prioritizes AI and cloud capabilities. Sources now indicate that another round of layoffs could be on the horizon — this time affecting the Xbox gaming division — as the company closes out its financial year. If confirmed, this would mark the fourth major round of job reductions at Microsoft within just 18 months. The restructuring follows its massive $69 billion acquisition of Activision Blizzard in 2023 and a renewed focus on profitability, AI, and gaming. Nadella's message is clear: AI's future must be tied to meaningful, inclusive progress. For companies like Microsoft, the challenge lies in navigating the fine line between innovation and responsibility. As AI reshapes industries, the tech world must ensure its promises justify its costs — both human and environmental.
India Today
19 hours ago
- Business
- India Today
Satya Nadella wants AI to solve real problems after Microsoft cuts 6,000 jobs, more layoffs likely in July
As artificial intelligence rapidly reshapes the tech landscape, Microsoft CEO Satya Nadella is urging the industry to take a hard look at the real-world value it delivers, especially considering the immense energy AI systems consume. Speaking at Y Combinator's AI Startup School, Nadella challenged the tech world to justify the environmental cost of powering large-scale AI. 'If you're going to use energy, you better have social permission to use it,' he said. 'We just can't consume energy unless we are creating social and economic value.'advertisementNadella's comments come at a time when AI is being hailed as the future of innovation, but also criticised for its potential to widen inequalities and burn through resources. For Microsoft, one of the largest builders of AI infrastructure in the world, the question hits particularly close to home. A 2023 report by Clean View Energy estimates Microsoft used around 24 terawatt-hours of electricity last year—roughly equivalent to the annual consumption of a small Nadella insists that the measure of AI's success lies in whether it can simplify daily challenges. 'The real test of AI,' he explained, 'is whether it can help solve everyday problems — like making healthcare, education, and paperwork faster and more efficient.' He offered a striking example of the American healthcare system, where inefficiencies often inflate costs. 'A simple thing like hospital discharge — if done with an AI model — can save time, money, and energy,' he said, highlighting how AI could help untangle bureaucratic knots in overburdened despite the optimism, Microsoft's AI-driven vision for the future is not without its human cost. In the past year alone, the company has laid off over 6,000 employees, attributing the job cuts to shifts driven by AI and automation. In a statement, Microsoft described the layoffs as part of 'organisational changes necessary to best position the company for success in a dynamic marketplace.'That dynamic marketplace, of course, is increasingly defined by AI tools and cloud platforms. Microsoft, alongside its strategic partner OpenAI, has placed AI at the heart of its business transformation. But with that transformation comes a wave of internal restructuring—often at the expense of human the shake-ups might not be over. Reports now suggest that Microsoft is planning another round of layoffs, this time targeting its Xbox division. The move is said to be part of a broader corporate reorganisation as the company nears the end of its financial carried out, it would mark the fourth major round of job cuts at Microsoft in just 18 months. The company is under mounting pressure to improve profitability following its $69 billion acquisition of video game giant Activision Blizzard in 2023. With shareholders watching closely, the company appears determined to trim costs and double down on its AI and gaming in all, this only proved that it is a balancing act -- building the future with advanced technology while proving that the immense energy usage and the workforce disruptions involved are worth it. - Ends
