Overview
- Microsoft revealed a $625 billion remaining performance obligation with roughly $281 billion tied to OpenAI, alongside $37.5 billion in quarterly capex weighted to short‑lived GPUs and CPUs.
- Copilot traction remains modest at 15 million paid seats against 450 million Microsoft 365 seats, sharpening questions about AI monetization.
- Reports indicate Nvidia’s previously floated $100 billion OpenAI investment has been pared back to a potential smaller stake, while Amazon is reportedly discussing an investment of up to $50 billion as OpenAI seeks up to $100 billion.
- Alphabet and Amazon enter earnings under scrutiny for proof of AI returns, with Google Cloud’s reported $155 billion backlog, AWS near $200 billion, and deals such as a $38 billion OpenAI cloud capacity agreement and a multiyear Apple Gemini tie‑up reported.
- Nvidia and TSMC remain key beneficiaries of the build‑out, with Nvidia effectively sold out of data‑center GPUs and TSMC boosting annual capex to roughly $52–$56 billion to meet advanced‑node demand.