When Gen AI Fails To Produce A Meaningful ROIC, Which CEOs Will Be Fired?
Will Microsoft (MSFT) CEO Satya Nadella be fired by the Board when Copilot Pro and the Gen AI component of Azure fail to generate a positive ROIC over the next several years?
Will Amazon (AMZN) CEO Andy Jassy be fired when AWS fails to generate a positive ROIC on its Gen AI investment?
Will Google (GOOGL) CEO Sundar Pichai be fired when Google Cloud Platform fails to generate a positive ROIC on its investment?
Knowing that Gen AI will fail to produce profits over the next few years is as easy as shooting fish in a barrel. Therefore, which of the above mentioned CEOs (and others) will lose their jobs for having spent tens of billions of Dollars on Gen AI?
I can see Andy Jassy getting blown out of AMZN if he does not course correct quickly in 2025.
Similarly, I can see MSFT souring on Nadella. I don’t see MSFT spending $100 billion in conjunction with OpenAI on an AI supercomputer as rumored as I see the Gen AI bubble popping before then and MSFT scaling back its AI spend.
GOOGL’s Pichai may be safe as Google’s cofounders wished to pursue the Gen AI effort.
The good news is that once the Gen AI bubble pops, the money spent in previous quarters on Gen AI can be reallocated to efforts that will generate a positive ROIC.