The immediate catalyst, it seems, is an intensifying focus on capex, or capital expenditures. Microsoft revealed that its spending surged 66% to $37.5 billion in the latest quarter, even as growth in its Azure cloud business cooled slightly. Even more concerning to analysts, however, was a new disclosure that approximately 45% of the company’s $625 billion in remaining performance obligations (RPO)—a key measure of future cloud contracts—is tied directly to OpenAI, the company revealed after reporting earnings Wednesday afternoon. (Microsoft is both a major investor in and a provider of cloud-computing services to OpenAI.)
I miss consistent weather.
A company with a $3.2T market share. The game is made up and the points don’t matter.
“market reaction suggests that more capital isn’t going to be a viable substitute for a business model anymore.”
Time to find the next vague thing that investors can pour trillions into without really knowing what it is or does.
Don’t forget, though, it does that one thing for that one reason I forgot already as I typed it… But its still good, clearly!
OpenAI has made about $1.4 trillion in commitments to procure both the energy and compute it needs to fuel its operations. But its revenue barely crossed $20 billion in 2025.
Investors are increasingly critical of what they describe as “circular” deals involving the industry’s biggest players. On Wednesday evening, The Information reported that OpenAI is seeking a fresh $60 billion in funding from heavyweights like Nvidia and Amazon. However, market reaction suggests that more capital isn’t going to be a viable substitute for a business model anymore. “Maybe Oracle stock got way ahead of fundamentals, and now the market’s saying, ‘All right, show me, I want to see it,’” Eric Diton, president of the Wealth Alliance, told**Yahoo Finance.
I hate AI…it never was AI. It was useless in all my tests.
Please fucking crash I want to be able to buy basic computing hardware again
Since OpenAI just announced the possibility of bankruptcy, it’s definitely coming. It’s going to be wild for whichever idiot in charge at MS to go down in history as the man who ruined one of the most powerful and integral companies on earth.
Wait, where? I wanna read and savour it.
idk, it was late last year that Sam said he expected OpenAI revenue to grow steeply, but also that if it doesn’t then the company could go bankrupt by 2027 at the latest.
lol they havnt even put the ads in yet
They don’t have a product with any actual value or use cases. The ads aren’t going to reverse that. If it were that simple then they would have been able to make profit with their subscription model.
How would that even work as well? The ads will be in the website, doesn’t most stuff run through API calls? If you force everyone to start paying per call, the business model falls apart instantly.
I think we’re quite a long way off before they actually crash and burn, if they ever do. We have no idea how much money the ads will inject and they also receive significant government contracts and will probably get a lot more going forward
If the market can pretend Tesla is worth so much i think it can easily sustain AI for many years
It’s already been several years. Tesla had an actual product that people wanted. Yes, they’ve been doing their best of late to torpedo their market share and brand name but at one point they were doing what they set out to do. Open AI has never done what they said they would do.
Kinda but also not entirely. I know a lot of people who use ChatGPT and other AIs at work and it does basically exactly what they want and just gets better
I’m not a proponent but the naysayer doomers are almost as wrong as the tech evangelists
Is it overvalued? Sure
Is it worthless? Absolutely not
That’s cool. I have yet to find a use case for AI. Am I doing it wrong or are they just bad with computers?
Doubt that’ll happen for a few mor years unfortunately. I can’t imagine most of the hardware made for AI datacenters is compatible with consumer stuff :/
A lot of it hasn’t actually been made, though. The AI companies have put in orders for future production. That future capacity can be redirected with a wave of a pen.
and so it does
The real lesson here is that if you are a company that was founded on stupid imaginary bullshit your investors are comfortable with investing in stupid imaginary bullshit and it isn’t going to hurt your price.
When you are a legacy tech company whose investors expect you to actually make products that you sell for money, they don’t like to hear that blew every penny you had on fucking magic beans.
This would be like Big Oil investing in Enron, no?
Wait.
You mean that dedicating the majority of their business to buying things from themselves has not proven to be a sound strategy in the eyes of investors?
Oh no…
Anyway.
So it begins
Looks like that magic well of social permission is about to dry up.
The AI ouroboros if finally consuming itself.
Sucks to suck
https://economictimes.indiatimes.com/news/international/us/us-stock-market-crashes-today-why-are-dow-sp-500-nasdaq-down-today-tesla-meta-microsoft-in-red/articleshow/127780471.cms This isn’t investment advice, I just thought this might be interesting to read! (Additional angle of same story)
