Latest news with #YCombinator
Hans India
16 hours ago
- Business
- Hans India
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.
India.com
17 hours ago
- Business
- India.com
AI's Power Problem: Satya Nadella Warns Tech World to Use Energy Wisely as Microsoft Plans More Layoffs
New Delhi: Microsoft CEO Satya Nadella is urging the tech industry to think hard about how much energy artificial intelligence (AI) uses and whether it truly benefits people. Speaking at Y Combinator's AI Startup School, Nadella said, 'If you're going to use a lot of energy, you need to have a good reason. We can't just burn energy unless we are doing something useful with it.' He stressed that AI should make real improvements in daily life, like making healthcare, education, or paperwork easier and faster. Nadella pointed out that Microsoft, one of the world's biggest AI companies, used about 24 terawatt-hours of electricity in 2023—about as much as a small country. He said AI's true test is whether it solves real problems, such as helping hospitals discharge patients faster, saving both time and money. But while Microsoft is betting big on AI, it's also cutting jobs. Over the past year, the company has laid off more than 6,000 employees as it reorganizes to focus on AI and cloud computing. More layoffs are expected soon, especially in the Xbox gaming division and sales teams, as Microsoft tries to boost profits after spending billions to buy Activision Blizzard. Nadella's message is clear: AI should not just be about new technology or profits—it must prove its worth by genuinely helping society, especially given its massive energy appetite. As Microsoft leads the AI race, it's also facing tough choices about jobs and the true cost of innovation.
India.com
a day ago
- Business
- India.com
After 6000 job cuts, Microsoft plans another layoff in July, CEO Satya Nadella says 'If you're going to use...'
After 6000 job cuts, Microsoft plans another layoff in July, CEO Satya Nadella says 'If you're going to use...' Microsoft CEO Satya Nadella is calling on the industry to think seriously about the real impact of artificial intelligence (AI) especially the amount of energy it uses. This comes as AI is quickly changing the tech world. Speaking at Y Combinator's AI Startup School, he said that tech companies need to prove that AI is creating real value for people and society. 'If you're going to use a lot of energy, you need to have a good reason,' Nadella said. 'We can't just burn energy unless we are doing something useful with it.' His comments come as AI is praised for pushing innovation forward, but also criticized for using massive amounts of electricity and possibly making social gaps worse. For Microsoft, one of the biggest companies building AI tools, this is a big concern. A report in 2023 estimated that Microsoft used about 24 terawatt-hours of power in a year. That's as much electricity as a small country uses in the same time. But Nadella believes AI should be judged by how well it helps people in real life. 'The real test of AI,' he said, 'is whether it can make everyday life easier—like improving healthcare, speeding up education, or cutting down on boring paperwork.' He gave the example of hospitals in the U.S., where simple things like discharging a patient can take too long and cost too much. He said if AI is used for this task, it could save time, money, and energy. Microsoft's AI push comes with job losses Even as Microsoft have big plans for AI, the changes have not come without a cost, especially for workers. Over the past year, the company has laid off more than 6,000 employees. Microsoft said these job cuts were part of 'organisational changes' needed to stay strong in a fast-changing business world. That fast-changing world is being shaped by artificial intelligence and cloud computing. Microsoft, working closely with its AI partner OpenAI, is putting AI at the center of its future plans. But as the company shifts toward more automation and AI-driven tools, it's also reorganizing teams, often leading to people losing their jobs. Microsoft is reportedly preparing for another round of job cuts and this time in its Xbox division. The layoffs are expected to be part of a larger corporate reshuffle as the company wraps up its financial year. If these cuts go ahead, it would be Microsoft's fourth major layoff in just 18 months. The company is facing increasing pressure to boost profits, especially after spending USD 69 billion to acquire Activision Blizzard in 2023.
Hans India
2 days 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
2 days 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
