Premium: The Hater's Guide To Microsoft
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Microsoft is spending unsustainably on AI infrastructure while revenue growth stagnates. The company has invested $277 billion in capital expenditures since 2022, primarily on GPUs and data centers, yet Azure's growth has flatlined. Capital expenditures now consume 117% of Azure revenue and 45% of total company revenue, while Intelligent Cloud segment growth has stalled despite massive infrastructure investments. CEO Satya Nadella has overseen 80,000+ layoffs since 2014 while transforming Microsoft from an asset-light software monopolist into an asset-heavy behemoth betting on AI returns that haven't materialized. The company's remaining performance obligations suggest declining future revenue despite paper deals with OpenAI and Anthropic worth hundreds of billions that appear financially impossible to fulfill.
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Microsoft Is Wasting Its Money On AI — And Using It To Paper Over The Flagging Growth Of AzureMicrosoft Is A Decaying Empire That Bet The Future On Making In Excess Of $500 Billion In New Revenue Within The Next 4 To 6 Years From AI — And It Hasn’t Made A Dime In Profit Yet1 Comment
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