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Big Tech Struggles to Turn AI Hype Into Profits - WSJ - 0 views

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    "Generative artificial-intelligence tools are unproven and expensive to operate, requiring muscular servers with expensive chips that consume lots of power. Microsoft MSFT -0.43%decrease; red down pointing triangle , Google, Adobe and other tech companies investing in AI are experimenting with an array of tactics to make, market and charge for it. Microsoft has lost money on one of its first generative AI products, said a person with knowledge of the figures. It and Google are now launching AI-backed upgrades to their software with higher price tags. Zoom Video Communications ZM 1.79%increase; green up pointing triangle has tried to mitigate costs by sometimes using a simpler AI it developed in-house. Adobe and others are putting caps on monthly usage and charging based on consumption. "A lot of the customers I've talked to are unhappy about the cost that they are seeing for running some of these models," said Adam Selipsky, the chief executive of Amazon.com's cloud division, Amazon Web Services, speaking of the industry broadly. "
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