Microsoft

“Information also had a story this week that Microsoft accidentally released some documents that showed its cloud business is not as big as people think it is”

“We have information just broke a story that they hired a new IP, no, sorry, OpenAI hired a new IP lawyer who used to work in Microsoft, so go figure that one out.”

“Yeah, well, we know where Sam thinks, but also for those who like such intrigue, Amazon poached Microsoft's chief product officer as their new head of hardware, so I think that's always funny to me, these big companies poaching from each other.”

“So Microsoft, who's ten billion dollars into open AI, gave it exclusive access to their IP, has decided in part because it's too expensive to run, they're going to build a cheaper functional enough version to have to power some of these applications.”

“I'm in a hedge fund across from Google, you can see in the background, and the story is, unsurprisingly, they're shipping it to Microsoft and Meta and all the big companies. They are not shipping it to little companies anytime soon.”

“For the sake of business, it would be great if Microsoft just inherited the people that want to work on this stuff and they go into a normal business structure where they're a hundred billion dollar piece of a three trillion dollar company. That's the safest o…”

“I think the big winners on this are Microsoft, actually, despite the challenges of the eyes. It's Amazon. It's going to be Google.”

“I just think the Microsoft thing is gonna get really messy really fast with, like, The Microsoft shareholders, the public company, all the inter organizations. Like it's, I know Satya said it's going to be arm's length. I just don't buy into that.”

“Microsoft also has a really good I think a really good reputation and history of allowing kind of the subsidiary companies such as, you know Mohang and Minecraft and LinkedIn and you know, many of these things they've acquired sort of operate as their own goin…”

“I don't think a lot of people are recognizing like he like hit a Hail Mary and he was Screwed. And like, frankly, I'm surprised that Microsoft and Sequoia and Thrive, like didn't do more board diligence when they were investing all this money to figure out lik…”

“Microsoft's not going to fund AGI”

“If Sam Altman hadn't gone back to OpenAI, this, he had a job offer to do exactly the same thing.”

“If you believe, as I do, that all the value is going to accrue to the top five players anyway, what you'd expect is that, like, on some non-zero timeline, but in the next few years, all the talent that got excited about these startup opportunities and went fly…”

“There are laws designed to protect, you know, companies from getting so much market power that they're anti-competitive effects, and these deals are tailor-made to skirt those laws.”

“We saw it with Microsoft's huge, you know, ten billion dollar investment in OpenAI, huge portion of which isn't in cash. But it's in credits”

“What the information was able to report last night is a little bit more of the terms there. So it looks like Microsoft gave the early shareholders in inflection their money back, plus a little bit of a return and more to come on what that structure looks like.”

“We'll see Walmart and Oracle and maybe Microsoft and who knows, try to form potential consortiums to buy it or spin it off.”

“Azure in their last quarter announced a twenty five billion dollar quarter of which a five percent lift came from AI. So they added something like a billion and a half per quarter in new revenue for what they considered AI services on their cloud.”

“Because they have an actual use case for AI. Microsoft actually has to sell the fucking AI, right? Because that's the whole thing is not, they can't use it. They got to actually sell it.”

“I read in the information that TikTok is paying Microsoft Twenty million dollars a month to access open AI through Azure.”

“These deals, we've now had three, basically like billions of dollars of acquihires of teams to get around acquiring companies. Microsoft's done it, Amazon's done it, and now Google's done it.”

“Microsoft quite literally had to buy a nuclear power plant, right?”

“And you know what? I bet Microsoft is all in favor of this too, because they don't want to have all their workloads either.”

“Microsoft's not going to fund AGI”

“Like this went from being a nonprofit research organization with a lot of really, you know, interesting ideas, definitely fundamentalists, to being the tip of the spear, not just for Microsoft and their customers, but for all of Silicon Valley.”

“I was interviewing Nat Freeman today for our internal Vercel podcast today, and he was talking about how much conviction Microsoft got into OpenAI because of the effectiveness of Copilot. Like when Satya saw Copilot, when they were doing the initial iterations…”

“Eleven billion dollars is completely irrelevant to Microsoft. Right. It's a three trillion dollar company, right? Like they can spend a living billion dollars.”

“Frankly, I'm surprised that Microsoft and Sequoia and Thrive, like didn't do more board diligence when they were investing all this money to figure out like this board was like not adequate for the type of company that this has become.”

“So it's almost like the government operating system showed up inside of Microsoft and slowed it down to like the crawl of the DMV for like 10 years, right? Microsoft, like after the, you know, time period was up, I don't remember how long it was, just like sli…”

“Behind President Trump's family was not his cabinet members or, you know, people who have served in his administrations in the past, but the CEO of every major large tech company, except Microsoft, which we could circle back to Bezos, Zuckerberg, Pichai, Elon.”

“Twelve billion has gone into Grok, and OpenAI, you have to sort of discount the Microsoft dollars, because a lot of it's for compute, but an estimated twenty billion. Into open AI. So, you know, almost double what Grok has used to build a very similar, if not …”

“There are two ways if you're a business to get open AI. You can get them from Microsoft or you can get them from OpenAI. What's OpenAI doing? It's cutting the price to undercut Microsoft.”

“The journal reported that OpenAI had considered an antitrust complaint against Microsoft.”

“Open AI would like Microsoft to go down to a third. From, I guess, around 49%, or, and it just seems like this relationship has completely deteriorated”

“Microsoft, Amazon, Alphabet are all in the 60 to 80% range right now. Apple is at 10%.”

“Satya will not want his investment that he has also invested a shit ton of infrastructure and supporting to go to zero. And he doesn't have to agree until the 11th hour, but that's like, he'll agree at the 11th hour.”

“They've shown only an appetite to invest something like 10, maybe 20% of their operating cash flow in AI infrastructure. They're not willing to spend 70, 80% like Meta or Amazon or Microsoft.”

“And then we charted of the, we just had earnings, of the backlogs in deals for Microsoft, Oracle, Google, and Amazon, what percentage are OpenAI's commitment and Anthropi's commitment? It's together, they're about half, ok?”

“Microsoft is the only of the big tech companies that has been consistently down this year and is like investors are really worried about Microsoft and all the things we talk about day in and day out.”

“They actually restructured and like pushed him aside. Like they've had like many reorgs.”

“This was a great financial strategy for Microsoft. It wasn't a great product strategy. They like executed a massive trade. The trade looks like it's working out, but the product outcome that they wanted or that they perhaps needed hasn't materialized”

“Microsoft had a right of first refusal. On all new compute from OpenAI. And Sam was saying, we need more. And Amy Hood, the CFO of Microsoft and Satir were like we're not going to give you more right now. And they underestimated their needs and let them pursue…”

“They're like the only one whose entire AI strategy depends on a partner that's actively becoming a creator.”

“They also really kind of cool integrated it like directly into windows and they have a new long running agent called scout. That's based on open Built on Openclaw.”

“The narrative shift on Microsoft in the last year is, like, wild to me. They went from, like, they could do no wrong to, like, they're the worst.”

“Like, Microsoft is sort of the only of the big tech stocks that is like, down. Like, the investors are not happy with the strategy over there.”

“Sarah Bond was running it for a while. She was amazing, and she left.”

“Yep, now Asha is running it, who was doing AI, and she's, like, totally overhauled the strategy, jettisoned a lot of studios.”

“Anthropic decided to be Microsoft and to become an enterprise company. My understanding is that they focus entirely on their largest enterprise customers and that they don't care about press. They don't care about smaller enterprise customers or small business…”