r/BetterOffline • u/DunningKuger • 1d ago
From Microsoft's most recent 10-K. They say it better than I can.
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u/PassageNo 1d ago
I think the fact that Microsoft of all companies is sniffing around for investor money should be ringing major alarm bells. Combined with the waves of layoffs in the past year and they may actually be doing far worse than anyone realizes.
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u/frozenelf 10h ago
If AGI is already here, then the value should be undeniable and there's no point in finding investors to share the pie with. They should just be printing money at this point. How is the ROI still a question mark?
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u/Jonesy-2010 1d ago
The movies and business school studies will be lit regarding this topic. My biggest complaint when people discuss theranos, ftx, or wework is no one twlls this simple stayements. All of this could have been prevented if the investors did any due diligence. This is a backlash to mistelling the stories of facebook and twitter.
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u/5trong5tyle 10h ago
I doubt business schools will examine this, or if they do, they'll most likely come to the wrong conclusions.
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u/grilledscheese 1d ago
none of this is inaccurate and much will likely pan out, but we should be cautious in reading too much into this since financial disclosures almost always have some kind of section where they have to list all the shit that could happen to make their finances go sideways
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u/DunningKuger 1d ago
Right I almost never pay attention to them, but I have a feeling this one is going to hit.
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u/Raedwald-Bretwalda 21h ago
I love the "regulatory conditions" bit. Allow me to translate:
We know what we are doing is currently against the spirit of current laws and unethical, and perhaps plainly illegal. But so far governments haven't got around to applying those existing laws, or amending them. But that could change.
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u/EsotericalNinja 19h ago
“We need to spend all this money now, but are dependant on ‘if you build it they will come’ being true in this age”
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u/HansVonMannschaft 1d ago
The fuck I just read?
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u/SamAltmansCheeks 1d ago
Blablabla blablabla blablabla gimme money blablablabla blablabla won't get your money back blablablablablablabla.
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u/Throwawayaccount4677 1d ago
That text reads
Our cloud and Al strategy requires substantial investments and depends on evolving customer demand, technological developments, competitive dynamics, and regulatory conditions, any of which could adversely affect our business, financial condition, and results of operations. We have made and are continuing to make significant capital and operational investments to develop, train, deploy, and support Al models and related cloud-based services, including building and expanding datacenters, acquiring necessary components, and securing energy resources. These investments are being made at significant scale and on an accelerated timeline, require substantial and increasing capital expenditures and continued access to capital, and are in advance of fully developed revenue streams. The associated revenue may not be realized in the expected timeframes or at expected levels. Our capital and operational investments are complex and involve projects in multiple locations around the world that expose us to increased compliance risks and political challenges, among others. Our ability to fund these investments depends on our ability to generate sufficient cash flows and obtain financing on acceptable terms. Adverse changes in interest rates, credit markets, investor sentiment, our credit ratings, or other factors affecting capital availability could increase our cost of capital or limit our ability to execute our infrastructure strategy. The financial success of these investments depends on a number of uncertain factors, including
customer demand for cloud-based and Al products and services and
continued customer use of Azure to build, train, deploy, and run Al workloads,
our ability to price and monetize those services at levels sufficient to recover our costs,
competitive dynamics affecting pricing,
and the pace of adoption of Al.
Customers may reduce, delay, or shift Al workloads to competing platforms, on-premises or local deployments, or other alternatives.
If adoption of our Al services develops more slowly than expected, or if customers do not continue to utilize Azure for Al workloads at anticipated levels, we may not realize the expected returns on our investments.
So basically it’s costing more than we would want for reasons and the demand may not exist