Gary Marcus, a founder of two AI companies, has been sounding the call loudest of all, most recently in a column for The New York Times, warning that the countless billions spent on genAI will be wasted because there will be little payback. Instead, he argues, companies like Microsoft should instead put their money in more targeted ways for specific purposes like medical research.
Microsoft begs to differ. It’s essentially been saying: “AI bubble? What AI bubble?” and doubled down on its AI spending. The company’s not alone. Amazon, Google, Meta, OpenAI and all the other AI believers are doing the same thing.
Follow the money
To understand why Microsoft continues to bet big on AI, take a look at its spending plans and the customer demand for its AI services. Microsoft execs laid them out during the company’s most recent earnings call, which covered the first quarter of the 2026 financial year.
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