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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.)

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[-] empireOfLove2@lemmy.dbzer0.com 50 points 1 week ago

Please fucking crash I want to be able to buy basic computing hardware again

[-] FiniteBanjo@feddit.online 15 points 1 week ago

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.

[-] zqwzzle@lemmy.ca 10 points 1 week ago

Wait, where? I wanna read and savour it.

[-] FiniteBanjo@feddit.online 7 points 1 week ago

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.

[-] gustofwind@lemmy.world 3 points 1 week ago

lol they havnt even put the ads in yet

[-] FiniteBanjo@feddit.online 2 points 1 week ago* (last edited 1 week ago)

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.

[-] Baggie@lemmy.zip 3 points 1 week ago

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.

[-] gustofwind@lemmy.world 1 points 1 week ago

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

[-] krashmo@lemmy.world 3 points 1 week ago

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.

[-] gustofwind@lemmy.world 2 points 1 week ago

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

[-] krashmo@lemmy.world 3 points 1 week ago

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?

[-] Randynippletwist@lemmynsfw.com 0 points 1 week ago

Yes, why do you care about the pointless corporate crap you produce . Ai slop is the desired result you are just letting your pride get in the way.

[-] gustofwind@lemmy.world 0 points 1 week ago

Products and services have been dropping in quality well before ai slop

You overestimate the quality of acceptable work in many industries. AI and a little human editing and oversight is perfectly capable of producing legitimate work product.

The real problem is capitalism driving everything to shit and that really has nothing to do with ai influenced workflows

[-] myserverisdown@lemmy.world 1 points 1 week ago

I went from Windows laptop and Netflix and Hulu to a Linux desktop for a home server running Immich, Mealie, Jellyfin, and the Arr suite in docker containers. All proxied on Cloudflare for remote access. I would never have been able to do that without the use of ChatGPT. I had no knowledge of software development, Linux, networking, etc at all. If you know how to query, AI can be a huge aid in learning. It's helping me brush up on my Italian right now too since I haven't spoken it in 5 years.

[-] krashmo@lemmy.world 2 points 1 week ago

That's cool. I did all of that without AI coming from a similar place as you. AI didn't open up a new path for you, it just showed you a path that already existed, which isn't any different from what a regular search engine can do. There was nothing stopping you from finding that path on your own except your unwillingness to look.

[-] gustofwind@lemmy.world 1 points 1 week ago

Tbh it’s not much different than search engines. You need to learn how to use them and when it’s appropriate to do so…it’s basically a skill issue 🤷‍♀️

Reminds me of when search engines first arrived and we were taught very early in school how library research works and then when to use digital academic databases vs regular search engines or just hit the books.

And yeah tech support is a great use case and you can just use the Gemini links that send you to the Reddit threads where the information came from to verify it.

I feel like if you’re minimally responsible it’s pretty hard to have AI backfire on you

[-] Zorsith@lemmy.blahaj.zone 2 points 1 week ago

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 :/

[-] zurohki@aussie.zone 1 points 1 week ago

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.

[-] anakin78z@lemmy.world 29 points 1 week ago

"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.

[-] mrnobody@reddthat.com 2 points 1 week ago

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!

[-] purrtastic@lemmy.nz 1 points 1 week ago

Robotics. It will be a pivot to robotics.

[-] elucubra@sopuli.xyz 1 points 1 week ago

Which will create a labor boom, to operate the robots, a la Tesla

[-] Pringles@sopuli.xyz 1 points 1 week ago

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.

[-] Grolly@feddit.dk 1 points 1 week ago

I would be surprised. Quantum computers haven't even been proven to be theoretically useful.

[-] supersquirrel@sopuli.xyz 18 points 1 week ago

and so it does

[-] UnspecificGravity@piefed.social 18 points 1 week ago

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.

[-] Truscape@lemmy.blahaj.zone 1 points 1 week ago

This would be like Big Oil investing in Enron, no?

[-] 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.

[-] redbrick@lemmy.world 12 points 1 week ago

I hate AI...it never was AI. It was useless in all my tests.

[-] Earthman_Jim@lemmy.zip 1 points 1 week ago* (last edited 1 week ago)

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.

[-] UnspecificGravity@piefed.social 10 points 1 week ago

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?

[-] UnderpantsWeevil@lemmy.world 9 points 1 week ago

A company with a $3.2T market share. The game is made up and the points don't matter.

[-] hellothere@sh.itjust.works 6 points 1 week ago

Oh no....

Anyway.

[-] veeesix@lemmy.ca 6 points 1 week ago

Looks like that magic well of social permission is about to dry up.

[-] Jankatarch@lemmy.world 6 points 1 week ago

I miss consistent weather.

[-] SinningStromgald@lemmy.world 5 points 1 week ago

The AI ouroboros if finally consuming itself.

[-] TachyonTele@piefed.social 4 points 1 week ago

Sucks to suck

[-] ell1e@leminal.space 3 points 1 week ago* (last edited 1 week ago)
[-] unnamed1@feddit.org 2 points 1 week ago

So it begins

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

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