Recently, Microsoft purchased a seemingly absurd service for $1.7 billion: burying human feces, animal feces, and sewage. What seems like "buying poop" is actually Microsoft's response to the carbon emissions caused by the rapid expansion of its AI business. Behind this lies a complex high-tech business model closely related to carbon reduction and environmental protection.
Microsoft is increasing its investment in the AI field, with services such as Copilot, Bing AI search, and ChatGPT from OpenAI relying on massive computing power. To support the training of these AI models, Microsoft's data centers consume enormous amounts of electricity. For example, training GPT-4 may consume 50 to 60 million kilowatt-hours, emitting carbon dioxide equivalent to that of over 3,000 cars in a year. Moreover, the carbon emissions generated by AI models during operation each year may require large areas of forests to offset.
Facing growing carbon emissions, Microsoft proposed the goal of achieving "carbon negative emissions" as early as 2020. However, the reality is that since the rise of AI business, Microsoft's carbon emissions have not decreased but instead increased by 23.4%. To achieve its emission reduction goals, Microsoft decided to offset its emissions by purchasing carbon credits.
Microsoft has partnered with a biotechnology company called Vaulted Deep, which specializes in converting various organic waste into "biomass slurry" and injecting it deep underground into rock layers 1,500 meters below the surface. The purpose of this is to prevent carbon dioxide and methane from being released when the waste decomposes on the surface. According to the contract, Vaulted Deep will help Microsoft handle 49 million tons of carbon equivalents, at an estimated cost of $1.7 billion.
Microsoft's move is not just a simple environmental attempt, but also related to the U.S. tax system. According to the 45Q policy, companies that capture and store carbon dioxide can receive a tax credit of up to $85 per ton. In addition, improving ESG scores can benefit companies in the capital market, attracting more investments.
However, this method of offsetting emissions by purchasing carbon credits has been questioned by some environmental organizations. They believe that effective carbon reduction should come from the source, rather than paying for external projects. Currently, with the development of AI technology, tech giants are joining the "carbon reduction arms race," committing to achieve net-zero emissions by 2030 or 2040. Microsoft's "buying poop" behavior actually reflects the carbon reduction challenges faced by the entire AI industry.
Key Points:
🌍 The $1.7 billion "buying poop" action is actually a measure taken by Microsoft to address carbon emissions caused by AI.
💡 Microsoft has partnered with Vaulted Deep to offset 49 million tons of carbon equivalents by burying organic waste.
📈 Purchasing carbon credits is closely related to U.S. tax policies. Microsoft's actions may bring tax incentives and positive reactions in the capital market.