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Microsoft's recent stock gains are obviously due to AI hype and the expected returns from it, but does the company actually have obvious lines of revenue from A
by paxys 3y ago
Microsoft's recent stock gains are obviously due to AI hype and the expected returns from it, but does the company actually have obvious lines of revenue from AI to that degree? Looking at the numbers investors are expecting them to make more from LLMs than they do from products like Windows and Office.
I don't want to use the "bubble" word, but...
- Workaccount2 3y agoPeople expect LLM's to be folded into Office, and MS to command a premium for the real or perceived productivity boost.
- foobarian 3y agoWhat about Azure revenues providing access to GPU resources?
- paxys 3y agoThat's all going to NVIDIA.
- snowwrestler 3y agoMicrosoft’s biggest lines of business support knowledge work (Windows, email, Office, MS365, etc) and AI is looking it will provide a nice productivity bump to knowledge workers. Even just building AI into existing products could help justify price increases, offset on the customer side by higher productivity. In plain English: AI means companies will need fewer knowledge workers per unit revenue and MS will have a strong claim on some of those additional profits if they are supplying the AI (even if they are reselling OpenAI).