It now looks as if the race between Microsoft and Google for the best AI strategy has been decided
Source: HolgerZ, Bloomberg
Elon predicts that OpenAI will eat Microsoft alive and believes MSFT should stop supporting it.
Source: The AI Investor @The_AI_Investor
💥 Microsoft’s latest SEC filing quietly revealed a lot about OpenAI’s finances.
According to the numbers, OpenAI lost roughly $11.5 billion last quarter — a figure inferred from Microsoft’s own disclosures. 📊 With a 27% stake in OpenAI, Microsoft recorded a $3.1 billion hit to its net income, pointing to massive operating losses at its AI partner. 💸 The filing also shows Microsoft has now funded $11.6 billion of its $13 billion total commitment to OpenAI — and those losses are now being reflected directly in Microsoft’s earnings under equity accounting rules. 🤔 The takeaway: the AI boom is incredibly expensive, and even the biggest players are feeling the weight of the burn rate.
In Q1 2026, Microsoft $MSFT's CapEx totaled $35B, up 44% QoQ
That brings Last Twelve Months (LTM) CapEx to over $100B. Source: Quartr
$MSFT is following the path of $GOOGL
This translates to around $340,000 for every citizen, making it one of the richest countries per capita. Source: Massimo @Rainmaker1973, Quartr
OPENAI IN TALKS WITH $MSFT TO SECURE FUNDING & PAVE PATH TO IPO 😳
OpenAI and Microsoft are rewriting the terms of their multibillion-dollar partnership in a high-stakes negotiation designed to allow the ChatGPT maker to launch a future IPO, while protecting the software giant’s access to cutting-edge artificial intelligence models. Microsoft, OpenAI’s biggest backer, is a key holdout to the $260bn start-up’s plans to undergo a corporate restructuring that moves the group further away from its roots as a non-profit with a mission to develop AI to “benefit humanity”. A critical issue in the deliberations is how much equity in the restructured group Microsoft will receive in exchange for the more than $13bn it has invested in OpenAI to date. Source: Shay Boloor @StockSavvyShay, FT
Microsoft ($MSFT) announced its third quarter earnings after the bell on Wednesday, beating expectations on the top and bottom lines on the strength of its cloud performance.
hares of Microsoft rose more than 6% on the news. $MSFT Microsoft Q3 FY25 (ending March): ☁️ Azure +35% Y/Y fx neutral (31% in Q2). 🤖 16% of Azure revenue attributed to AI. • Revenue +13% Y/Y to $70.1B ($1.6B beat). • Operating margin 46% (+1pp Y/Y). • EPS $3.46 ($0.24 beat). Source: App Economy Insights, www.zerohedge.com
Microsoft $MSFT CapEx increased with 53% y/y in Q3'25
Source: Quartr
