Microsoft Is Laying the Gen AI Bullsh** on Thick
Microsoft’s leaking that it plans to build a $100 billion data center with OpenAI seems like a play to maintain momentum in MSFT’s share price. “Run for the hills” I say. MSFT is overvalued.
Chips and LLMs drive Gen AI innovation: 99% of the Generative AI intellectual property innovation is at the chip (NVIDIA, Groq, Google, etc.) and LLM (OpenAI, Google, Mistral, etc.) level. Microsoft - unlike Google - does not design proprietary chips nor LLMs.
MSFT’s spell won’t last forever. Investors will eventually figure out that MSFT is the same sleepy company that it has always been.
Much of MSFT’s growth comes from price increases.
Gen AI use cases haven’t yet materialized beyond the experimentation that companies are doing so that CEOs have something to say when their Boards and investors ask “What are we doing in Gen AI?”