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Microsoft cancels leases for AI data centers, analyst says

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Re: Microsoft cancels leases for AI data centers, analyst says

#41

Post by toomuchtodo »

unsupp0rted wrote: post #35
toomuchtodo wrote: post #24

Microsoft CEO Admits That AI Is Generating Basically No Value - https://futurism.com/microsoft-ceo-ai-generating-no-value Bit of a click bait title, but it certainly seems like the realization is setting in that the hype has exceeded near term realistic expectations and some are walking back claims (for whatever reason; honesty, derisking against investor securities suits, poor capital allocation, etc). Nadella appea…

Nadella is looking for the world to grow at 10% due to AI enhancement, like it did during the industrial revolution. That seems like a low bar because it already is- it's just not equally distributed yet. My own productivity has grown far more than 10% thanks to AI, and I don't just mean in terms of dev. It reads my bloodwork results, speeds up my ability to repair a leak in my toilet tank, writes a concise "no I won…

You should be curious why Nadella is looking for the world to grow at that rate. That’s because he wants Microsoft to grow into $500B/year in revenue by 2030, and it will be challenging without that economic growth to grow into that target. You can grow into a TAM, try to grow or broaden the TAM, or some combination of both. Without AI, it is unlikely the growth target can be met.

https://www.cnbc.com/2023/06/26/microsoft-ceo-nadella-said-r...

Re: Microsoft cancels leases for AI data centers, analyst says

#42

Post by skywhopper »

fny wrote: post #15
drexlspivey wrote: post #6

I guess Satya is not good for his $80B (for project Stargate) any more.

He is: this refers to spending Microsoft had planned on its own outside of Stargate. It says so in the article.

In other words “Stargate” is itself a lie: no new spending, just a political repackaging of existing plans.

Re: Microsoft cancels leases for AI data centers, analyst says

#44

Post by thagsF »

unsupp0rted wrote: post #35
toomuchtodo wrote: post #24

Microsoft CEO Admits That AI Is Generating Basically No Value - https://futurism.com/microsoft-ceo-ai-generating-no-value Bit of a click bait title, but it certainly seems like the realization is setting in that the hype has exceeded near term realistic expectations and some are walking back claims (for whatever reason; honesty, derisking against investor securities suits, poor capital allocation, etc). Nadella appea…

Nadella is looking for the world to grow at 10% due to AI enhancement, like it did during the industrial revolution. That seems like a low bar because it already is- it's just not equally distributed yet. My own productivity has grown far more than 10% thanks to AI, and I don't just mean in terms of dev. It reads my bloodwork results, speeds up my ability to repair a leak in my toilet tank, writes a concise "no I won…

And Henry Ford would reply: "Who is going to buy the cars?"

We have been living in a fake economy for quite some time where money is printed and distributed to the "tech" sector. Which isn't really "tech", but mostly entertainment (YouTube, Netflix, Facebook, ...).

Growth of the economy means nothing. The money that has been printed goes to shareholders. What the common man gets is inflation and job losses.

If you want to grow the real economy, build houses and reduce the cost of living.

Re: Microsoft cancels leases for AI data centers, analyst says

#45

Post by jeyoor »

dpflan wrote: post #40
bognition wrote: post #34

Earlier quoted context omitted.

Time to sort NVDA?

Using “bubble” sort? ;)

The combination of high and climbing price to earnings ratios for a smaller subset of tech firms, outsize retail investment in tech (cloaked by people buying crypto), and macro environment factors like high interest rates stimulating risky lending has me swapping this bubble toward the top of the list.

See further: https://www.morningstar.com/news/marketwatch/20250123167/six...

Re: Microsoft cancels leases for AI data centers, analyst says

#46

Post by short_sells_poo »

toomuchtodo wrote: post #37
bognition wrote: post #34

Earlier quoted context omitted.

Time to sort NVDA?

A fellow degenerate gambler I see. The market can remain irrational longer than you can remain solvent, trade with caution. Being early is the same as being wrong.

Highly regarded people unite :D

More seriously though: unless you have privileged information or have done truly extensive research, do not short stocks. And if you do have privileged information, still don't short stocks because unless you have enough money to defend yourself against insider trading like Musk and it's ilk, it's not going to be worth it.

It's perfectly reasonable to determine that a particular high growth stock is not going to perform as well going forward, in which case I'd shift allocation to other, better candidates.

Generally, being long equities is a long term positive expected value trade. You don't have to time the market, just be persistent. On the other hand, as you correctly alluded to, shorting equities requires decently precise timing, both on entry and exit.

Re: Microsoft cancels leases for AI data centers, analyst says

#48

Post by dijit »

bognition wrote: post #34
toomuchtodo wrote: post #24

Microsoft CEO Admits That AI Is Generating Basically No Value - https://futurism.com/microsoft-ceo-ai-generating-no-value Bit of a click bait title, but it certainly seems like the realization is setting in that the hype has exceeded near term realistic expectations and some are walking back claims (for whatever reason; honesty, derisking against investor securities suits, poor capital allocation, etc). Nadella appea…

Time to sort NVDA?

I think its probably foolish to short nvidia until theres at least echoes of competition.

AMD wants it to be them, but the reality is that the moat is wide.

The closest for AI is Apple, but even then, I’m not certain its a serious competitor; especially not in the datacenter.

For Gaming there’s practically no worthwhile competition. Unreal Engine barely even fixes render bugs for Intel and AMD cards, and I know this for fact.

FD: I’m recently holding shares in nvidia due to the recent fluctuation, and my own belief that the moat is wider than we care to believe, as mentioned.

Re: Microsoft cancels leases for AI data centers, analyst says

#49

Post by turnsout »

helsinkiandrew wrote: post #32
asadhaider wrote: post #30

Earlier quoted context omitted.

Unfortunately Siri remains near useless at times even with Apple Intelligence™®

The "LLM Siri" hasn't been rolled out even in beta, estimates reckon 2026 https://www.macrumors.com/2024/11/21/apple-llm-siri-2026

Yes, although before full "LLM Siri," Apple promised an "enhanced" Siri with contextual understanding in iOS 18. The clock is ticking though—WWDC will be here before you know it.

Re: Microsoft cancels leases for AI data centers, analyst says

#50

Post by threeseed »

unsupp0rted wrote: post #35
toomuchtodo wrote: post #24

Microsoft CEO Admits That AI Is Generating Basically No Value - https://futurism.com/microsoft-ceo-ai-generating-no-value Bit of a click bait title, but it certainly seems like the realization is setting in that the hype has exceeded near term realistic expectations and some are walking back claims (for whatever reason; honesty, derisking against investor securities suits, poor capital allocation, etc). Nadella appea…

Nadella is looking for the world to grow at 10% due to AI enhancement, like it did during the industrial revolution. That seems like a low bar because it already is- it's just not equally distributed yet. My own productivity has grown far more than 10% thanks to AI, and I don't just mean in terms of dev. It reads my bloodwork results, speeds up my ability to repair a leak in my toilet tank, writes a concise "no I won…

Going to safely assume you've never worked at an enterprise.

Because improving the productivity of every employee by 10% does not translate to the company being 10% more productive.

Processes and systems exist precisely to slow employees down so that they comply with regulations, best practices etc rather than move fast and break things.

And from experience with a few enterprise LLM projects now they are a waste of time. Because the money/effort to fix up the decades of bad source data far exceeds the ROI.

You will definitely see them used in chat bots and replacing customer service people though.

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