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Microsoft's AI setback: an imaginary letter

4 pointsby colinprince5 months ago

1 comment

bruce5115 months ago
There is so much wrong with this letter that it&#x27;s hard to know where to start.<p>Let&#x27;s start with the idea that they&#x27;ve invested a lot (13 billion+) or that they&#x27;re depending a lot (undisclosed). Maybe this is a lot for you and me, but MS has 80 billion lying around in cash, after the investment.<p>Thats not the capital they have access to - its the bit of the capital they haven&#x27;t got around to investing yet.<p>Secondly there&#x27;s this perpetual idea that everything in tech is a bubble. Sure some is. Maybe you&#x27;re old enough to remember the dot-com bubble? You know, when that internet-fad thing went away? Or the iPhone bubble? Or the Facebook bubble?<p>The bubble isn&#x27;t investing in the primary tech - it&#x27;s investing in the millions of startups test appear to first exploit that tech.<p>To the letter author - here&#x27;s Satya&#x27;s real letter;<p>We continue to invest in the future. Those investments are bearing fruit. (BTW, if you have other ideas for seeing returns on $billion investments, please let us know. We&#x27;re swimming in cash, and have few ideas on where to put it.)