> They are however compromising it pretty heavily with overblown claims about how it's going to make people's lives better. They also have little to no profitab

> They are however compromising it pretty heavily with overblown claims about how it's going to make people's lives better. They also have little to no profitability model around it and the development is operating at a heavy loss with the hope that they can break even with silicon advancements and user count down the line. You've just described every AI company. AI is not even their core business, but MS is certainly in the best position out of any of the Big Tech companies to deliver a successful consumer product. Whether someone else will step in and steal their lunch, or they just fumble the product, only time will tell, but none of this is an indication that they're "abandoning AI" as GP mentioned. Quite the contrary―they're heavily invested in it. The rest of your post is pure speculation, but I'll set a reminder for 5 years from now in case your crystal ball is legit.