3 6 Ke·2025-12-09 23:49Core Insights - Microsoft's AI products are facing significant challenges in the market, with declining user interest and sales performance [1][11][21] - The company has lowered its sales KPIs for AI products, a rare move indicating internal concerns about product performance and market demand [3][7][12] Sales Performance - Microsoft has adjusted its sales targets for AI products, particularly for Azure AI, due to poor sales performance [7][9] - A specific Azure sales team aimed for a 50% growth in sales but only achieved less than 20%, leading to a revised target of 25% [9][11] - Overall, both enterprise and consumer-facing AI services are experiencing weak demand, falling short of expectations [11][12] Strategic Issues - Microsoft's AI strategy has been criticized for poor execution and lack of user engagement, with products failing to meet user needs [12][16] - The integration of OpenAI technologies into Microsoft's products has not translated into user interest, despite OpenAI's popularity [14][17] - The company's reliance on OpenAI and NVIDIA for AI capabilities has created vulnerabilities, as these partners face their own challenges [19][21] Competitive Landscape - Google's AI products, particularly the Gemini model, are gaining traction and threatening Microsoft's market position [21][22] - Google has established a stronger product ecosystem, allowing for quicker adoption of AI technologies compared to Microsoft [21][22] - Other companies, including OpenAI and AWS, are also experiencing a slowdown in AI product growth, indicating a broader trend in the industry [24][26] Financial Outlook - Despite the challenges in AI product sales, Microsoft is expected to earn approximately $15 billion from OpenAI's cloud server rentals, indicating that the overall AI business remains profitable [22][24] - The company is navigating a complex landscape where it must balance its investments in AI with the performance of its products and partnerships [19][22]