My biggest impressions from the article
Microsoft shares slid about 10% on Thursday following an earnings report that disappointed some investors, prompting the stock’s sharpest daily decline since March 2020.
Microsoft’s finance chief, Amy Hood, argued that the cloud result could have been higher if it had allocated more data center infrastructure to customers rather than prioritizing its in-house needs.
“If I had taken the GPUs that just came online in Q1 and Q2 in terms of GPUs and allocated them all to Azure, the KPI would have been over 40,” she said.
Analyst Ben Reitzes of Melius Research, with a buy rating on Microsoft stock, said during CNBC’s “Squawk on the Street” on Thursday that Microsoft should double down on data center construction.
“I think that there’s an execution issue here with Azure, where they need to literally stand up buildings a little faster,” he said.
LMAO, the analysts and C level execs are going to accelerate the fall of Micro$lop.
Oh no. Anyway…
Make Windows 7 again (or just use Linux), ditch AI, value your users. Sack the CEO. Pretty simple.
Or double down on AI. Then double down even harder.
- Make the use of Copilot mandatory; simultaneously heavily monetize it to instantly turn the AI division into a profit center.
- To that end release the successor to Windows 11, a cloud-only offering that replaces the taskbar with a Copilot instance which launches programs for the user. Downplay any accusations that the new Windows Live 365 With Copilot is just a rental Windows 11 with the taskbar hastily hacked out.
- Don’t forget that Windows Live 365 With Copilot does not include a subscription for Copilot, which must be booked separately.
- Get all of your customers to switch by immediately dropping support for all previous Windows versions, “migrating” their support windows over to Windows Live 365 With Copilot. Corporate customers, which have gone all-in on Azure, will need years to migrate off the Windows ecosystem, which means excellent short-term revenue.
- Make sure that Windows Live 365 With Copilot can only save to OneDrive to make it maximally hard for those customers to get their data out.
- Hope that the current world order disintegrates before the massive exodus of customers ruins the company.
- Whether or not it does, turn off your business phone and spend the next five years doing massive amounts of cocaine on a private island in the South Pacific.
A business plan to rally the crowds behind 💸
I wonder how well a project to secure windows 7 and provide 3rd party security patches would do financially. Whichever country grows the balls to ignore the DMCA could do it and make a lot of people happy.
Very few people would use it. You’d have all the issues of Linux where very little is made for the OS, so community made ports would be the only way to get things running. Those downsides are counteracted by the upside of Windows… which is what?
DirectX I guess. I don’t know I haven’t owned a windows box since 2006 or so, and I found that one literally in someone’s trash. Still had their wedding photos on it and everything.
8 was better than 7.
No. 8.1 maybe. But not 8
Both because of Metro, unless there’s a back port to 7 there’s no reason to use 7.
I remember 8 being a cluster fuck. But 8.1 was ok.
I had a windows phone at the time. Those were great.
“If I had taken the GPUs that just came online in Q1 and Q2 in terms of GPUs and allocated them all to Azure, the KPI would have been over 40,” she said.
“If I had bet on black instead of red I would have won”
If ifs and butts were candy and nuts we’d all have a merry Christmas.
The same Melius Finance that gave Tesla stock its highest rating of “must own” due to Elon lying again that Full Self Drive is being deployed imminently to Teslas via their in-house “AI chips” eta Dec 2025?
https://finance.yahoo.com/video/tesla-stock-must-own-melius-220721932.html
Tesla stock is currently at $416 after a high of $474 in November, around when this call was made.
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Do you mean that Windows Copilot AI Extra Spyware Edition wasn’t a smashing success, despite literally everyone who isn’t a buzzword-spouting CEO telling them this would happen for like a fucking year?
I’m still on the fence as to whether their current CEO is just a complete business illiterate, or some kind of corporate Manchurian candidate… It’s sure LOOKS like malicious mismanagement to me, a nobody pleb.
Someone needs to engineer a virus that removes whatever defect humans have in their DNA that causes civilization-imperiling greed.
Microsoft has really messed up quite spectacularly. 5 years ago I would never have even considered switching to another OS (especially for a daily driver).
Yet here I am, using LINUX! My experience with Linux has gone from the perception of it as a scary figure, a ghost looming around me that I was trying to ignore. But now, I’m realizing that Linux is more like Casper. Linux is a friendly ghost. So while I still may not know how to totally deal with cohabitating with a ghost, at least it’s friendly, in theory.
But in less obtuse terms: my experience with Linux has definitely had it’s terminal moments and learning to de-Windowsify my tasking, but it’s come to the point where the cons of Windows make it a non-starter.
Maybe it’s not the year of the Linux desktop, but the years of the Linux desktop. Reaching a wider audience and finding a way to make choosing a distro is going to be a task.
I will say that while I’ve never bought one of their systems, System76 is a company I regularly check up on because I think it’s very cool that they’re PC building from the ground up with Linux (and their own Linux distro as well). It’s a trend in the right direction, at least.
Microsoft’s finance chief, Amy Hood, argued that the cloud result could have been higher if it had allocated more data center infrastructure to customers rather than prioritizing its in-house needs.
This is 98% chance a lie. Refusing azure clients wasn’t happening. They are saying the dedicated GPUs to copilot 365/windows/bing, but they would just slow tokens/second delivery or raise prices if they were constrained. Open AI/copilot service is flattening out is the far more likely explanation, and China/Anthropic/Google gaining share is apparent with frontend and LLM innovation.
That said, windows 11 copilot is going at about 7tps on simple queries about its QOS, and slow service of paid models could impact azure. In Nov 25, they did drop big customer volume discounts. There were big price increases earlier in the year, so growth was in part pricing growth, and likely a drop in usage volume from previous quarter, or at least very stable. The AI frenzy, mostly openAI/msft/oracle/coreweave block of absurdly impossible capacity growth depends on keeping up with supposedly massive (token) demand growth. There are still a lot of free alternatives in the space, and app download figures usually accompany free promotional usage of latest breakthrough model (sora2 was free use on release. kilo code this week has free Kimi K2.5. Other coding tools have fully free or generous free tiers)
Overall, this, and highly promotional industry, means its very hard for datacenter/LLMs to meet the hype. Deepseek 4 is hyped as a big leap forward, to be released in a couple of weeks. Everything AI boom is likely a lie, and Nvidia bribing Trump to sell H200s to China, at 25% export tariff, is proof of incapacity or unwillingness of US industry to deploy them.
Everything AI boom is likely a lie, and Nvidia bribing Trump to sell H200s to China, at 25% export tariff, is proof of incapacity or unwillingness of US industry to deploy them.
I’d love for you to be right (I’d like to see nvidia compete as an underdog since they are fairly anticompetitive in their dominant position) but think this reasoning is flawed.
Wanting to sell to China just means that demand isn’t exceeding supply, or maybe even that they have access to more supply that they’d use if they could sell to China, which is a massive market. Or even if they don’t have any excess supply, higher demand means they can set higher prices and still expect to sell all inventory.
Like the US car companies wanting to sell cars in China doesn’t imply that they are unable to sell cars in the US, it just means they want to sell cars to China and the US.
I agree with the rest of your comment and think it was well said, sorry about this nitpick.
Wanting to sell to China just means that demand isn’t exceeding supply, or maybe even that they have access to more supply that they’d use if they could sell to China, which is a massive market. Or even if they don’t have any excess supply, higher demand means they can set higher prices and still expect to sell all inventory.
Nvidia has to sell to a Chinese buyer for 25% more than a US buyer would pay to have equivalent profit. It’s certainly possible that China is willing to pay more than that difference, but US private sector is supposed to be in desperation mode for skynet, in addition to having direct white house access of lobbying against China for mere trinkets in tribute. MSFT and others have the power to tell whitehouse/other republicans that they want to buy the H200s instead, and amplify warmongering BS as the reason. They just don’t want to buy them.
Like the US car companies wanting to sell cars in China doesn’t imply that they are unable to sell cars in the US, it just means they want to sell cars to China and the US.
US car companies are not supply constrained, including some of them with factories in China, and aren’t prohibited from selling all of their cars there if they were competitive. Nvidia has not been making H200s recently. It has astronomical record inventory levels (likely H200s based on lobbying win). Thier H20 cards that they sold to China the last 2 years, are the best value inference cards on ebay from China, but Americans were not allowed to buy them directly. Since about half of Nvidia GPUs are assembled in China, they have 0 problem with black market access to them, and massive secret Singapore customers of Nvidia are likely them directly profiting from Chinese black market with payment to Nvidia instead of pilferage of GPUs. I get that B200s B300s are better value/FLOP than H200s, but H200s could be priced to Americans/colonies on the same/similar $/flop, and if US/MSFT was really supply constrained, they’d buy or lobby government to force Nvidia to sell them at good $/flop. The Nvidia corruption is also likely to create new H200 production making newer GPUs “scarcer”
I would desperately love for companies to lose big on LLMs. The vast majority of users just don’t seem worth the huge energy costs. I do think there are a number of worthwhile ML applications that could make the world better, but I have little faith that they’ll be allowed to unless they generate big profits.
Attending those meetings must be soul crushing. The entire point of the call is to take advantage of your customers more, get more money out of them, and get more wasteful data centers built.
WE DON’T WANT DATA CENTERS, WE HATE THEM.
I hope AI dies a fast and painful death and the PC world can get back to normal.
I hope so, too. However when AI dies nothing will go back to normal. I have been waiting for things to go back to normal since the GPU shortage from the bitcoin shambles. Christ, I’m still using a 980ti and have given up buying new games (which, ironically, probably saved me enough money to buy a top line GPU)
They will find another way to manufacture some shortage or another to bump up the prices and gouge gouge gouge.
god this is the newest product name. You have Office365 and now AI357!
AI357 as in I’d rather eat a .357? Impeccable marketing
you are killing it!
Microslop is allergic to good or descriptive product names
Keep it going!
They are still up 25% over the past year?
What else can plunge down on necks real fast?
Oh no, anyways…
