00:00 Speaker A
Our next trading ticker, Microsoft, that stock is moving lower today after a new note from TD Cowen Analyst revealed the tech giant has abandoned data center projects that used two gigawatt watts of electricity in the US and Europe in the last six months due to an over supply relative to its current demand forecast. What’s interesting, Julie, about the note is, um, okay, so they say that, yes, Microsoft walked away here from new data center projects, right, US and Europe. But then they also talked about how other hyperscalers kind of stepped in. Yes. Um, that Google stepped in, grabbed some releases, uh, uh, and also Meta, by the way, they say, also stepped in and grabbing some of that free capacity.
00:59 Speaker B
Yeah, so that there’s not necessarily implications for the data center operators, right? It’s more a question of getting the big picture of what’s going on in AI. I thought one of the interesting things they said was one of the reasons that Microsoft pulled back was because it decided to not support incremental open AI training workloads. I don’t exactly know what the implications of that are, but I just thought that that was sort of intriguing. The other thing that I thought was interesting is they talked about as Nvidia continues to develop its plans for next generation, um, data centers that there is a little bit of a hold back on making purchasing decisions until it’s clear what the next sort of Nvidia iteration is going to look like. You know, why make all the plans now, order all the equipment, order the space, if you don’t yet know exactly what you’re gonna need because you don’t know what the Nvidia system is going to look like. So they talk about that a little bit, too.
02:41 Speaker A
By the way, just speaking of AI, did you see this Bloomberg report that hit this afternoon, they cited a source familiar on open AI expects their revenue is gonna triple to 12.7 billion dollars this year. And then they say, and the revenue is going to continue growing at a fast clip, more than doubling next year to 29.4 billion. Yes. Yeah. Fast up there. Little The bottom line, though, is just one more thing, I mean, obviously, Haley, listen, those chips, those data centers, they don’t come cheap. So, again, this is Bloomberg citing a source. Open AI does not expect to be cash flow positive until 2029.
03:50 Speaker B
2029?
03:53 Speaker A
Yeah. A year when it’s projected revenue, though, tops 125 billion. There you go.
04:02 Speaker B
Stuff is really expensive.