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> The ~$10B OpenAI investment by Microsoft is roughly 6 weeks of Azure revenue. Revenue isn't what is important. Profit is since profit is the money you have a
by simpletone 3y ago
> The ~$10B OpenAI investment by Microsoft is roughly 6 weeks of Azure revenue.
Revenue isn't what is important. Profit is since profit is the money you have after costs to invest. But since cloud is highly profitable as it is, the point still stands I suppose.
> It would be a fascinating outcome if the predicted oligopoly in fact ends up as several exclusive partnerships.
I thought people were predicting independent silos? Where highly profitable and cash rich companies like apple, microsoft, google, facebook, etc own their entire stack or exist as their own ecosystem. Where the likes of apple does everything in-house - AI, cloud, OS, chips, etc. The whole she-bang.
- bbor 3y agoOpened the comments for exactly this. This person seems very nice but also convinced that they’re a business maven, which I think leads them to making “clear” observations like that. Microsoft hasn’t invested a full year of revenue into OpenAI, so it’s not that invested? Meh
- jjjjj55555 3y agoStupid question, but where would their competitive advantages be in these silos? Sounds like at that point cloud+AI is just a commodity.
- jffry 3y agoThe relative scale still stands - Microsoft's net income in October, November, and December 2023 was over $21 billion, according to https://www.microsoft.com/en-us/Investor/earnings/FY-2024-Q2 https://www.microsoft.com/en-us/Investor/earnings/FY-2024-Q2