Microsoft has been quietly providing bespoke artificial intelligence services to major fossil fuel companies, including ExxonMobil and Chevron, while publicly touting its environmental leadership, according to an investigation by The Atlantic. The report, based on internal documents and interviews with dozens of current and former employees, reveals that Microsoft's AI tools are designed to help oil producers maximize drilling efficiency and revenue—details that have been omitted from the company's public sustainability announcements.
The investigation, led by reporter Karen Hao, uncovered a 2022 pitch deck in which Microsoft claimed its AI could boost ExxonMobil's annual revenue by $1.4 billion. Of that projected increase, $600 million was attributed to what the company called “sustainable production,” a term used to describe drilling methods that purportedly consume less energy. These claims were made despite Microsoft's public commitment, announced in 2020, to become “carbon negative” by 2030.
Microsoft has repeatedly argued that its AI services help oil companies operate more efficiently, thereby reducing emissions. This rationale has been a recurring theme in company materials and interviews with clients, but critics say the logic is flawed: helping fossil fuel companies extract more oil and gas, even with greater efficiency, still contributes to climate change. The Atlantic's report suggests that Microsoft has deliberately kept these partnerships out of the spotlight, raising questions about the sincerity of its environmental pledges.
Holly Alpine, a former Microsoft sustainability program manager who left the company earlier this year after nearly a decade, told The Atlantic that the company's public narrative hides a darker reality. “All of Microsoft's public statements and publications paint a beautiful picture of the uses of AI for sustainability,” she said. “But this focus on the positives is hiding the whole story, which is much darker.” Alpine, who now lobbies against her former employer, said she became disillusioned after years of pushing back against the company's support for fossil fuel extraction.
When asked about the timeline for severing ties with oil and gas clients, a Microsoft spokesperson told The Atlantic that the company has “not committed to a timeline.” This response underscores the tension between Microsoft's climate goals and its business interests in the energy sector.
The report comes at a time when Microsoft is facing scrutiny over its environmental impact, including a separate report that the company is losing a staggering amount of money on AI. The Atlantic's findings add to a growing body of evidence that tech companies' climate pledges may not align with their actual business practices.
While Microsoft has positioned AI as a tool for sustainability, the investigation reveals a more complex picture, where the same technology is being used to extract fossil fuels more effectively. The company's dual role—as both a climate advocate and a supplier to polluting industries—raises broader questions about the role of technology in addressing climate change.
