Microsoft has already invested billions of dollars in AI. Credit: Turag Photography on Unsplash.

US technology giant Microsoft does not plan to offer salary rises to full-time employees this year, reported CNBC, citing an email from CEO Satya Nadella.

The development is in line with Microsoft’s efforts to reduce expenses as revenue growth weakens and clients cut spending.

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In January this year, the software manufacturer announced its plan to reduce its workforce by 10,000.

Other technology giants including Alphabet, Amazon, and Meta have also recently reduced their headcounts.

“We will maintain our bonus and stock award budget again this year, however, we will not overfund to the extent we did last year, bringing it closer to our historical averages,” Nadella was quoted as saying in the email.

Earlier on Wednesday, Insider reported on the development.

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According to Nadella, performance compensation for Microsoft’s senior executives will be far lower than they were last year.

He also emphasised Microsoft’s efforts to take advantage of the expanding artificial intelligence (AI) sector.

“We are clear that we are helping drive a major platform shift in this new era of Al, and doing so in a dynamic, competitive environment while also facing global macroeconomic uncertainties,” Nadella added.

The technology giant has invested billions of dollars in OpenAI, which launched the popular AI chatbot ChatGPT.

Most recently, it was reported that Microsoft is supporting Advanced Micro Devices (AMD) to advance in the AI chip market.

Support to AMD’s initiatives, including offering financial and technical resources to develop an alternative to NVIDIA, which currently dominates the AI chip industry.