This is a most excellent place for technology news and articles.
owing to a slight miss on revenue
Nope, try again.
spending surged 66% to $37.5 billion in the latest quarter ... 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
Ding ding ding! That's right, OpenAI, the company where being profitable is a physical and mathematical impossibility!
Off topic, but interesting username. Are you a fan? Wait, are you him?
I hope it burns. Altman can kick rocks.
20 years ago while being in a mental hospital sam altman while also a patient there , don't let big tech censor the truth
Please fucking crash I want to be able to buy basic computing hardware again
So much money is tied up in AI, that when it crashes you're likely to end up poor, or worse, homeless, than being able to afford anything.
I wonder how fast you could run Farcry on one of those AI GPU units.
Pretty sure MS will just seize the OpenAi data centers and repurpose them for Azure and rent out compute time or use it for XBox streaming. Non of the hardware will reach the open market.
Regardless of who owns it or what they do with it, those GPUs will get sold on the used market with plenty of life left. Older AI GPUs, networking equipment (eg 100GbE), SAS drives, etc have been easy to find on eBay and other sites for a long time, because data centers replace hardware long before it's expected to fail.
Exactly. They have like an 8 year depreciation, but they supposedly become obsolete in a couple of years for whatever cutting edge AI is supposed to be.
I'm ready for all those tech psychos to go down, and take Tesla with them.
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.
In her new letter to OpenAI, Senator Warren requested additional information regarding OpenAI’s business model, its plans to fulfill its spending commitments, and its appeal to the White House for taxpayer support by February 13, 2026.
There is big shit show going on.
edit: original letter https://www.warren.senate.gov/imo/media/doc/letter_to_openai_from_senator_warren.pdf
savour
Unfortunately that stops pretty quickly when you realise there will be a bailout
Yup. Privatize profits, socialize losses. It’s the way the capitalist machine is able to keep grinding up orphans for the 1%.
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.
I miss consistent weather.
The snow keeps melting
The hurricanes keep getting stronger
"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.
It'll be quantum computing. Since the last hype around it, a lot of progress has been made to the point that quantum computers are actually becoming useful, since error correction is now mostly resolved.
The amount of cooling they need for a simple quantum CPU with 104 qubits. Can you even do anything with it that is useful, you can't even brake encryption because you don't have enough processing power.
The science is advancing, but then as always is the question of, how you scale it to be economical viable, which is a hard problem by it self to solve.
Don't think the market is interested in tech that they can't hype, or have a natural hype cycle.
I would be surprised. Quantum computers haven't even been proven to be theoretically useful.
Robotics. It will be a pivot to robotics.
Which will create a labor boom, to operate the robots, a la Tesla
Challenge there being that seems to have proven elusive. It's not too surprising, but trying to use machine learning for robotics is actually really hard.
Driving is much easier, training data with video, audio, and other sensor input complete with how the human manipulated steering and two pedals.
But direct human interaction with the environment is both much more complicated than three controls and is not instrumented. They are trying to build training data from remote operators, but it turns out we aren't very good at controlling these things remotely anywhere close to acting directly. We are terrible teachers and there's a fraction of the actionable data that other more successful models had to work with.
If an AI sees a video of someone doing something, it can make a similar video, but can't model how that might map to what it would see as unrelated motor and hydraulic operation.
Indeed. It will be a shitshow with all sorts of attempts to juice the share price via obfuscation of the actual abilities, like musk has been doing already. It won’t have many tangible outputs, but they’re desperate for the next big growth idea, so here we are.
A company with a $3.2T market share. The game is made up and the points don't matter.
3.2 trillion is a stupid amount of money, but it isn't all liquid. A 440 billion dollar hit (nearly 14%) would be very, very bad for them.
With the memory and SSD fiasco going on right now, fewer people are buying new PCs, which impacts their sales. Combined with the Windows 11 fiasco, the massive gaming division investments going nowhere, and the AI bubble, they're probably the most vulnerable they've been in decades.
OEM license revenue represents a tiny tiny bit of their financials these days. They could just charge nothing for it and business wise no one probably notice much of a difference.
It is foundational to a lot of what they do, but older devices are just as good for their subscription and tie in revenue. Hell I use my work subscription for office from Linux, complete with OneDrive filesystem synchronization. Microsoft gets all their money from my headcount even as I don't even use Windows.
But that capex could bite them hard if revenue falls to follow from it. That's pretty much the only exposure investors care about.
OEM licensing isn't the important part. It's everything that comes with it. Subscriptions, cloud storage, etc. In my city, a bunch of field workers are being moved from laptops to iPads and phones with the next hardware refresh due to the price jump in laptops. Microsoft won't have integrated Onedrive and SharePoint and full Office Subscriptions for them.
We already use third-party web apps that aren't Microsoft (and are mostly hosted by AWS) for a lot of their work, so the only Microsoft product they'll have is an email address.
Us abandoning the Windows laptops costs Microsoft hundreds a year per employee.
When someone makes a better version of excel that's cross platform and not solely web based will be the final nail in the Microsoft coffin.
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.
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.
and so it does
Oh no....
Anyway.
So it begins
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?
I hate AI...it never was AI. It was useless in all my tests.
The gig was up for me when I tried to get it to play dungeon master in a game of DnD. It would start out great, but eventually it would forget what we were doing and instead of giving me choices it started just telling me the story of me playing dnd and it would stop giving me options. This would happen about 6 minutes into playing, or 3 or 4 "turns", and that's when I realized the incredible memory sync it is if it can't reference instructions given moments ago. A newer model won't fix that.
At the end of the day it's complex predictive text that amounts to a Rorschach test.
The AI ouroboros if finally consuming itself.
