A single user loses more than $20 a month, and it is reported that Microsoft's AI business has been unprofitable.

Thanks to CTOnews.com netizens and soft media users for 1520111 clue delivery! CTOnews.com October 10 news, the Wall Street Journal today published a "Big Tech Struggles to Turn AI Hype Into Profits" article, claiming that Microsoft has been losing money because of high operating costs for GitHub Copilot and other AI services launched by OpenAI.

▲ Touyuan Wall Street Journal reported that in the first few months of this year, Microsoft lost an average of more than $20 a month for a single user, with some users costing the company as much as $80 a month.

According to the Wall Street Journal, AI usually does not have "the economies of scale of standard software". Every query performed by AI requires a large number of new calculations, and the more customers using the product, the higher the cost of paying for infrastructure, and these operating costs will lead to potential losses for "companies that charge fixed fees."

Microsoft and GitHub didn't respond to requests for comment from the Wall Street Journal on whether AI services make money.

The Wall Street Journal believes that if computing costs fall, the profit outlook for GitHub Copilot and other artificial intelligence assistants will change, while Microsoft is likely to increase the price of its AI service in the future. The company expects to charge an extra $30 a month for Microsoft 365 with AI extensions.