Microsoft’s annual shareholder meeting Friday played out as if on a split screen: executives describing a future where AI cures diseases and secures networks, and shareholder proposals warning of algorithmic bias, political censorship, and complicity in geopolitical conflict.

One shareholder, William Flaig, founder and CEO of Ridgeline Research, quoted two authorities on the topic — George Orwell’s 1984 and Microsoft’s Copilot AI chatbot — in requesting a report on the risks of AI censorship of religious and political speech.

Flaig invoked Orwell’s dystopian vision of surveillance and thought control, citing the Ministry of Truth that “rewrites history and floods society with propaganda.” He then turned to Copilot, which responded to his query about an AI-driven future by noting that “the risk lies not in AI itself, but in how it’s deployed.”

In a Q&A session during the virtual meeting, Microsoft CEO Satya Nadella said the company is “putting the person and the human at the center” of its AI development, with technology that users “can delegate to, they can steer, they can control.”

Nadella said Microsoft has moved beyond abstract principles to “everyday engineering practice,” with safeguards for fairness, transparency, security, and privacy.

Brad Smith, Microsoft’s vice chair and president, said broader societal decisions, like what age kids should use AI in schools, won’t be made by tech companies. He cited ongoing debates about smartphones in schools nearly 20 years after the iPhone.

“I think quite rightly, people have learned from that experience,” Smith said, drawing a parallel to the rise of AI. “Let’s have these conversations now.”

Microsoft’s board recommended that shareholders vote against all six outside proposals, which covered issues including AI censorship, data privacy, human rights, and climate. Final vote tallies have yet to be released as of publication time, but Microsoft said shareholders turned down all six, based on early voting. 

While the shareholder proposals focused on AI risks, much of the executive commentary focused on the long-term business opportunity. 

Nadella described building a “planet-scale cloud and AI factory” and said Microsoft is taking a “full stack approach,” from infrastructure to AI agents to applications, to capitalize on what he called “a generational moment in technology.”

Microsoft CFO Amy Hood highlighted record results for fiscal year 2025 — more than $281 billion in revenue and $128 billion in operating income — and pointed to roughly $400 billion in committed contracts as validation of the company’s AI investments.

Hood also addressed pre-submitted shareholder questions about the company’s AI spending, pushing back on concerns about a potential bubble. 

“This is demand-driven spending,” she said, noting that margins are stronger at this stage of the AI transition than at a comparable point in Microsoft’s cloud buildout. “Every time we think we’re getting close to meeting demand, demand increases again.”

Microsoft is investing $10B to build an AI data center hub in Sines, Portugal, partnering with Start Campus and Nscale to power Europe’s AI future.

The post Microsoft to Invest $10B in Portugal AI Data Center Hub appeared first on TechRepublic.

Microsoft is investing $10B to build an AI data center hub in Sines, Portugal, partnering with Start Campus and Nscale to power Europe’s AI future.

The post Microsoft to Invest $10B in Portugal AI Data Center Hub appeared first on TechRepublic.

Leaders in the Pacific Northwest are largely bullish on the region’s continued economic success — but one threat to the region’s fiscal progress worries them in particular.

“What always strikes me, whether I’m in City Hall in Vancouver or Seattle or Portland, is that everybody talks about the same thing — the high cost of housing,” said Microsoft President Brad Smith at this week’s Cascadia Innovation Corridor conference in Seattle.

“It’s become an enormous barrier, not just for attracting new talent, but for enabling teachers and police officers and nurses and firefighters to live in the communities in which they serve,” he added.

Dr. Tom Lynch, president and director of Seattle’s Fred Hutch Cancer Center, was more succinct.

“My people can’t find places to live,” Lynch said during a Tuesday panel at the same event.

Those concerns are bolstered by research in a new report on the economic viability of the corridor running from Vancouver, B.C., through Seattle to Portland.

Housing costs were cited as one of the top threats to the region’s success, noting that Vancouver’s housing-cost-to-income-ratio disparity is among the worst in the world, while in Seattle median home prices relative to wages have doubled in the past 15 years. Portland reports a net out-migration as workers move to more affordable areas.

Other concerns include rising business costs and regulations, declining numbers of skilled workers and new restrictions on foreign talent immigrating to the U.S., and clean energy shortages.

“We’ve got to find ways to be able to increase the density of our housing, come up with creative solutions for allowing more families to be able to live close to where the jobs are,” Lynch said.

Smith agreed, adding, “The only way to dig ourselves out of this is to harness the power of the market through public-private partnerships, to recognize that zoning and permitting needs to be put to work to accelerate investment.”

Area tech giants have been pursuing those partnerships to tackle the challenge.

In 2019, Microsoft pledged $750 million to boost the affordable housing inventory and has helped build or retain 12,000 units in the region. Amazon in recent years has committed $3.4 billion for housing across three hubs nationally where it has large operations. The company in September celebrated a milestone of building or preserving 10,000 units in the Seattle area.

Despite the efforts, Smith said the shortage keeps worsening and in 2025, new construction starts are expected to be the lowest since before the Great Recession.

The city of Seattle, for one, is looking to sweeten a property-tax exemption deal for developers that could encourage construction and it’s also applying AI to permitting process in an effort to speed up projects.

Smith also promoted the long-held vision of a high-speed rail line in the Pacific Northwest that would make commutes much faster between growing urban hubs. But a panel Wednesday cautioned that dream is still many years out.

It’s rare for a tech executive to cue up a video mocking themselves — but that’s just what Microsoft President Brad Smith did on Tuesday at the Cascadia Innovation Corridor conference in Seattle. Smith played a clip from The Daily Show in which comedian Jon Stewart lampooned his and Microsoft CEO Satya Nadella’s interviews about AI’s impact on jobs.

The segment poked fun at the idea that displaced workers might become “prompt engineers” — a new job Stewart rebranded as “types questions guy.”

It was a self-aware feature of a talk that balanced enthusiasm for artificial intelligence’s potential with sober reflections on its hype and potential pitfalls.

The Microsoft leader called AI the “next great general purpose technology” on par with electricity. He said AI will transform sectors including health, education, biotech, aerospace, agriculture, climate and others.

That was a theme during Tuesday’s event. Former Washington Gov. Chris Gregoire, who leads the Cascadia Innovation Corridor group, kicked off the day by calling AI “a defining technology of our generation.”

Smith, who in his three decades at Microsoft has witnessed tech bubbles and bursts, also offered a “breadth of perspective” on AI that he hinted might be lacking in Silicon Valley.

“In so many ways, the sky is the limit,” Smith said. “That is exciting, but I don’t want to just be another tech bro who says, ‘Hey, great, here it comes. Get ready, get out your wallet.'”

AI-driven employment threats are becoming increasingly real in the tech sector and beyond. Amazon on Tuesday announced a huge round of layoffs, slashing 14,000 corporate and tech jobs. Earlier this year Microsoft laid off 15,000 employees worldwide. The cuts aren’t all tied to AI, but many executives are talking about worker efficiency gains thanks to the tech.

Despite the recent layoffs, many industry and elected leaders in the Cascadia region, which stretches from Vancouver, B.C., through Seattle and down to Portland, see AI as a promising economic engine that can build on the area’s strong tech foundation. That includes Microsoft and Amazon as well as a growing slate of AI startups, plus institutions such as the University of Washington, University of British Columbia, Allen Institute for AI and others.

But Smith — who manages to strike a persona blending tech evangelist, politician and favorite uncle — also acknowledged concerns about disparities in AI access, whether looking locally at rural versus urban divides, or the gap between AI use in affluent and low-income countries that lack widespread electricity and internet connections.

He also tackled the meta questions around the responsible use of AI and encouraged society to get out in front of the technology with appropriate guardrails.

“What are we trying to do as an industry, as a region, as a planet, as a species? Are we trying to build machines that are better than people? Are we trying to build machines that will help people become smarter and better?” he asked.

“If the experience that we’ve all had with social media over the last 15 years teaches us anything at all,” Smith continued, “it is that the best time to ask these questions and to debate them is before technology answers them for us.”

RELATED: Cascadia’s AI paradox: A world-leading opportunity threatened by rising costs and a talent crunch