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- Microsoft has now sunk over $200bn in capex into AI, and intends to spend over $100 billion more. Yet its AI revenues are pathetic - based on info from sources at Azure, Microsoft makes no more than $15bn in annual AI revenue, with much of it coming from OpenAI. www.wheresyoured.at/premium-the-...
- One fact illustrates the gravity of the problem. In its latest quarter (Q2 FY26), Microsoft’s capex spending - most of which is for purchases of GPUs and servers and finance leases for data centers - is greater than its net income (profit). It's a disaster. www.wheresyoured.at/premium-the-...
- Microsoft’s dismal AI returns come as the company repositions its culture to be AI first (which workers hate), and spends big on hiring top AI talent, like Deepmind cofounder Mustafa Suleyman, a man loathed by every Microsoft employee I've talked to. www.wheresyoured.at/premium-the-...
- So far, nothing that Microsoft has tried has made its AI offerings any kind of success. Microsoft’s crushing capex burden continues to burn a hole in its balance sheet, and if a major AI player fails, it’ll likely have to take a multi-billion dollar impairment. www.wheresyoured.at/premium-the-...
- Right now, the sense of urgency isn’t there. The AI bubble has yet to pop. OpenAI - who represents 10%+ of Azure revenue - keeps paying its bills, even as it writes checks that it can't cash, and that spending helps obfuscate how bad things really are for Azure. www.wheresyoured.at/premium-the-...Feb 6, 2026 18:00
- Microsoft bet everything on AI, and by extension OpenAI. If OpenAI cannot fulfill its spending obligations on Microsoft Azure, a segment representing 40% of Microsoft’s revenue (and the majority of its capital expenditures), that's 8-10% of its revenue gone. www.wheresyoured.at/premium-the-...
