Cloud Ventures | Cloud Deals & FinOps ☁️

You only need one chart to know why the $400B in data AI capex from $meta $msft $amzn and $goog will never see a return

Why Microsoft & OpenAI's re-negotiation is more important than people realize >Microsoft & OpenAI re-negotiate partnership >Microsoft now has first right of refusal on providing OAI new capacity >Microsoft no longer required to subsidize unlimited GPUs compute >Stargate fills in to meet OAI demand and needs >SoftBank steps in to fund up to $40B >OpenAI projects losses may expand up to $20B in 2027 Microsoft just dodged the bullet of being permanently tied to OpenAI's capacity growth They now will continue to benefit from overall partnership while outsourcing the CAPEX It's not because Satya is now bearish on the AI Arms Race, it no longer made financial sense because this will not be a "winner take all market" With Open Source and model competition and diversity, it's the end customers choice. I am calling it right now, SoftBank will get caught holding the bag on trying to support OpenAI's endless compute growth

OpenAI winning

You can now chat with apps in ChatGPT.

this is how infra engineers sound to front end devs

All I can say is from what I see in the field, companies are foaming at the mouth from the thought of being able to replace headcount with AI Doesn’t matter the industry The is representative of a small sample of public companies

Morgan Stanley warns that Adobe, a 42-year-old software giant, faces severe downside risk if it fails to monetize AI quickly or if competitors leap ahead. Adopt AI or lose everything.

Accenture generates $90K in revenue per employee lol

Excited to share Vibes — a new feed in the Meta AI app for short-form, AI-generated videos.

never been more obvious what the next move is gonna be yes it’s ads

The scale of the data center built today has reached unprecedented levels. Since 2010, when Azure was first commercially available, until the launch of ChatGPT in 2022, $MSFT has spent $124.2B in Total CapEx as a company (not just data center). Today, we are talking about a single AI research company spending $MSFT's entire 12-year total CapEx in one year.

people now talk about GW data center like it's nothing but that used to be around 1/4 of AWS' GLOBAL footprint in ~2020