115
Microsoft’s $440 billion wipeout, and investors angry about OpenAI’s debt, explained (fortune.com)
submitted 1 week ago by themachinestops@lemmy.dbzer0.com to c/technology@lemmy.world
42 comments fedilink hide all child comments

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.)

you are viewing a single comment's thread
view the rest of the comments
[-] homesweethomeMrL@lemmy.world 17 points 1 week ago

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.

[-] GarbadgeGoober@feddit.org 1 points 1 week ago

Thanks for sharing, really insightful.

In my personal opinion after being also responsible in AI for our company, I do not see how it will be profitable for them.

For example Microsoft Copilot license, costs 30$/month, but a lot of things I can do with it a free Chatbot can do too.

It definitely has it strengths and use cases and I am sure it will not go away. But it is not the way the market it as a full AI, it just generates answers with the highest probability. I cannot see it developing from there to the real AI.

I think this year will be really interesting to watch all the AI companies, especially Oracle as they have to refinance a lot. If one falls it will send them into to a spiral, the big companies will be fine, but I am sure they will cut their funding of OpenAI.

But who knows could be the other way around and OpenAI finds anything new to make them more profitable.

this post was submitted on 30 Jan 2026
115 points (99.1% liked)

Technology

80791 readers
930 users here now

This is a most excellent place for technology news and articles.

Our Rules

  1. Follow the lemmy.world rules.
  2. Only tech related news or articles.
  3. Be excellent to each other!
  4. Mod approved content bots can post up to 10 articles per day.
  5. Threads asking for personal tech support may be deleted.
  6. Politics threads may be removed.
  7. No memes allowed as posts, OK to post as comments.
  8. Only approved bots from the list below, this includes using AI responses and summaries. To ask if your bot can be added please contact a mod.
  9. Check for duplicates before posting, duplicates may be removed
  10. Accounts 7 days and younger will have their posts automatically removed.

Approved Bots

founded 2 years ago
MODERATORS
L3s@lemmy.world
enu@lemmy.world
technopagan@lemmy.world
L4s@lemmy.world
L3s@hackingne.ws