Microsoft Faces Investor Scrutiny Over AI Spending and Copilot Adoption
A Michigan pension fund has filed a securities class action against Microsoft, alleging that the company concealed issues with its AI product Copilot's adoption rates and commercial returns. The lawsuit claims Microsoft spent $37.5 billion on data centers without sufficient customer demand for Copilot, which led to an investor backlash causing a 12% stock drop.
Topics: AI capital expenditures investors Microsoft Copilot securities class action