Satya Nadella sounds alarm on AI's energy use as Microsoft plans fresh layoffs
Microsoft CEO Satya Nadella has issued a strong call for responsible energy use in artificial intelligence (AI) as the company continues to restructure, signaling more layoffs ahead.
Speaking at Y Combinator's AI Startup School, Nadella emphasized the need for meaningful, energy-efficient AI innovation. 'If you're going to use a lot of energy, you need to have a good reason,' he said. 'We can't just burn energy unless we are doing something useful with it.'
Microsoft's AI operations consumed around 24 terawatt-hours of electricity in 2023, comparable to the energy use of a small nation. Nadella stated that AI must prove its value by solving real-world problems, like streamlining hospital discharges or improving education and productivity.
While Microsoft doubles down on AI and cloud computing, it continues to trim its workforce. The tech giant has cut over 6,000 jobs over the past year and more layoffs are expected—particularly in its Xbox gaming and sales divisions. This comes after Microsoft's multi-billion dollar acquisition of Activision Blizzard, a move aimed at strengthening its gaming and cloud ecosystem.
Nadella's message is clear: AI must benefit society, not just boost profits. As Microsoft leads in AI development, it faces tough choices about innovation, energy use, and employment in the digital age.
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