Microsoft is in a pickle. They put AI lipstick on top of decades of unfixed tech debt and their relationship with their userbase isn't great. Their engineering culture is clearly not healthy. For their size and financial resources, their position in the market right now is very delicate.
I think that's the impression you get if you focus on Microsoft as a OS vendor. It's not that anymore, that's why their OS sucks for many years now. Their main business is b2b, cloud services, and azure. I think they are pretty safe from OpenAI. Plus they have invested big in OpenAI as well.
They are one of the few companies actually making money with AI as they have intelligently leveraged the position of Office 365 in companies to sell Copilot. Their AI investment plans are, well, plans which could be scaled down easily. Worst case scenario for them is their investment in OpenAI becoming worthless.
It would hurt but is hardly life threatening. Their revenue driver is clearly their position at the heart of entreprise IT and they are pretty much untouchable here.
I disagree. They're the one place that can get away without investing in frontier model research and still win in the enterprise.
Google is only place that serves the enterprise (Workspace for productivity, Cloud for IT, Devices for end users) AND conducts meaningful AI research.
AWS doesn't (they can sell cloud effectively, but don't have any meaningful in-house AI R&D), Meta doesn't (they don't cover enterprise and, frankly, nobody trusts Zuck... and they're flaky.
Oracle doesn't. They have grown their cloud business rapidly by 1) easy button for Oracle on-prem to move to OCI, and 2) acting like a big colo for bare metal "cloud" infra. No AI.
Open AI has fundamental research and is starting to have products, but it's still niche. Same as Anthropic. They're not in the same ball game as the others, and they're going to continue to pay billions to the hyperscalers annually for infra, too.
This is Google's game to lose, imho, but the biggest loser will be AWS (not Azure/Microsoft).
I cry for Elon, that precious jewel of a human being.
Tesla (P/E: 273, PEG: 16.3) the car maker without robots, robotaxis is less than 15% of the Tesla valuation at best. When the AI hype dies, selloff starts and negative sentiment hits, we have below $200B market cap company.
conartist6|3 months ago
throwawayffffas|3 months ago
StopDisinfo910|3 months ago
They are one of the few companies actually making money with AI as they have intelligently leveraged the position of Office 365 in companies to sell Copilot. Their AI investment plans are, well, plans which could be scaled down easily. Worst case scenario for them is their investment in OpenAI becoming worthless.
It would hurt but is hardly life threatening. Their revenue driver is clearly their position at the heart of entreprise IT and they are pretty much untouchable here.
eitally|3 months ago
Google is only place that serves the enterprise (Workspace for productivity, Cloud for IT, Devices for end users) AND conducts meaningful AI research.
AWS doesn't (they can sell cloud effectively, but don't have any meaningful in-house AI R&D), Meta doesn't (they don't cover enterprise and, frankly, nobody trusts Zuck... and they're flaky.
Oracle doesn't. They have grown their cloud business rapidly by 1) easy button for Oracle on-prem to move to OCI, and 2) acting like a big colo for bare metal "cloud" infra. No AI.
Open AI has fundamental research and is starting to have products, but it's still niche. Same as Anthropic. They're not in the same ball game as the others, and they're going to continue to pay billions to the hyperscalers annually for infra, too.
This is Google's game to lose, imho, but the biggest loser will be AWS (not Azure/Microsoft).
Blamklmo|3 months ago
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nabla9|3 months ago
Tesla (P/E: 273, PEG: 16.3) the car maker without robots, robotaxis is less than 15% of the Tesla valuation at best. When the AI hype dies, selloff starts and negative sentiment hits, we have below $200B market cap company.
It will hurt Elon mentally. He will need a hug.
officeplant|3 months ago
slaw|3 months ago
gizajob|3 months ago
Rover222|3 months ago
rhetocj23|3 months ago
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ceo_tim_crook|3 months ago
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