Microsoft shareholders have filed a class action lawsuit against the company concerning its AI and cloud spending and business disclosures.
According to the complaint, which has been filed by The Rosen Law Firm on behalf of the plaintiffs, Microsoft allegedly made "false and/or misleading statements and/or failed to disclose" that it would need to increase its capex by billions of dollars, as well as other business disclosures.
– Sebastian Moss
Those disclosures include claims that Microsoft's Copilot products have been experiencing issues with "brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems," that the company's AI model "ranked well below competitors," and thus Microsoft was redirecting compute that could otherwise be used for "profitable Azure services" to improve its Copilot products and AI R&D.
The complaint said that when these trends were disclosed, "investors suffered damages."
