Microsoft stock plummets as investors fret on AI spend(finance.yahoo.com)

71 pointsby m-hodgesa day ago3 comments

autoexeca day ago
> Microsoft continues to face AI capacity constraints, meaning customer demand for AI is outpacing Microsoft’s ability to supply it, putting an artificial cap on the Windows maker’s revenue.
Strangely, all I hear about is how annoyed people are with MS shoving AI into everything. Who are these "customers"?
- boha day ago
  I think this is part of their circular financing "magic". The "customers" are likely OpenAI and Anthropic, who Microsoft is paying to use their infrastructure (so the "customer" who is paying for the AI capacity is Microsoft).
- benttoothpastea day ago
  The customers here are the executives that then require everyone in their companies to "use AI". It's an old and trusted business model of selling software not to the users, but to their managers.
  - yfwa day ago
    Llm mlm
- a99pa day ago
  AI adoption and investment is incestuous. Many major customers and investors of Microsoft are themselves heavy proponents of AI, so they need increased AI adoption to justify and sustain the extent to which they've already bought in.
- ThrowawayB7a day ago
  Reuters reports (https://www.reuters.com/business/retail-consumer/microsoft-e...) "CEO Nadella revealed for the first time that Microsoft now has 15 million annual users for M365 Copilot, the $30 per month AI assistant that is Microsoft's main offering for business users." so in theory that's $5.4 billion in revenue.
- saidinesh5a day ago
  Other companies deploying LLMs to automate their tasks? Other start ups / companies building AI products?
- cosmicgadgeta day ago
  Enterprises that are excited to replace people with agents.
- daxfohla day ago
  Haha "customers". Nobody cares about customers anymore. Investors are all that matter. They're the ones who want to see AI. Once you've pleased the investors, profitability is just accounting tricks.
  As the adage says, if something is free, you're not the customer, you're the product.
  - therobots927a day ago
    The new adage is: even if you’re a paying customer you’re not the customer. You’re the product
- cal_denta day ago
  the customers are all those annoyed people i'm afraid. spreadsheets just record it as another number whether you like it/wanted it or not
pinnochioa day ago
Not long ago, someone here thought OpenAI bulls investing in MSFT could be a good way to indirectly profit from OpenAI. I pointed out that you really had to weigh that against Microsoft's potential risks (pretty banal advice, really). Even though I hadn't made any prediction about which way MSFT would go, a bunch of people piled on me like it was utterly inconceivable that MSFT could go down because of cloud gains.
Just a friendly reminder that it's not just LLMs that can be confidently wrong.
- gritspantsa day ago
  "When a true genius appears in the world, you may know him by this sign, that the dunces are all in confederacy against him."
KellyCriteriona day ago
same with SAP/EU: down by 10%+ because of "missed investors expectations" LOL
(imagine: A company bringing in billions, laying off people in parallel, and then claiming "the business does not make enough money" - crazy!)