Money Pit Microsoft has spent a staggering amount of money on AI — and serious profits likely remain many years out, if they’re ever realized. The tech giant revealed that during the quarter ending in June, it spent an astonishing $19 billion in cash capital expenditures and equipment, the Wall Street Journal reports — the equivalent of what it used to spend in a whole year a mere five years ago. Unsurprisingly, most of those $19 billion were related to AI, and roughly half was used for building out and leasing data centers. Major tech companies are investing heavily to capitalize on the current hype surrounding generative AI. And the costs are racking up, with specialized chips and huge amounts of electricity straining budgets across the tech world. Microsoft still has enough money in the bank, despite having spent a record amount last quarter, totaling $36.8 billion in cloud revenue alone and a record $109 billion total in operating income. Nonetheless, whether the $19 billion — and far more that will surely chase it — will ever be recouped remains to be seen. Despite the astronomical costs, Microsoft and its peers have yet to see any significant amounts of revenue from AI worthy of disclosure in financial earnings, meaning they’re currently losing a staggering amount of money on the tech. Burning Cash While tech giants have been adamant that AI is a long game, analysts are becoming increasingly wary of the losses. Last week, The Information reported that OpenAI could end…Microsoft Is Losing a Staggering Amount of Money on AI