Microsoft (MSFT) Invests $400M in Switzerland to Bolster AI

Microsoft (MSFT) will invest $400 million in Switzerland to update its artificial intelligence (AI) presence in the country. These funds will go toward upgrades for its four data centers located near Geneva and Zurich. The company said this investment is warranted as AI demand in the area has increased.

Microsoft notes that this upgrade allows customers in Switzerland to use its AI services without their information leaving the country. That’s worth noting, as many businesses in Switzerland have strict policies against allowing confidential data out of the country’s borders.

As part of this push to enhance AI use in Switzerland, Microsoft will increase its collaborations with small and medium-sized companies. It will also offer AI training to help people better take advantage of the technology.

Microsoft Undergoes an AI Restructuring

In related news, Microsoft has announced layoffs. CEO Satya Nadella clarified that these job cuts aren’t related to worker performance. Instead, the company is making major changes as it shifts operations to focus on AI. That has resulted in a restructuring that has eliminated some jobs at Microsoft.

According to insiders, some workers will be offered new AI-related jobs, along with training to build their skills in that space. This, and ongoing AI hiring efforts, shouldn’t result in a major change in the company’s number of employees, despite the job cuts.

Investors will note that Microsoft’s interest in AI isn’t just through its data centers. The company is also a major backer of ChatGPT developer OpenAI, with roughly $14 billion invested in the AI company.

Is MSFT Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for Microsoft is Strong Buy, based on 30 Buy and five Hold ratings over the past three months. With that comes an average MSFT stock price target of $514.07, representing a potential 11.67% upside for the shares.

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