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Ed Zitron's Where's Your Ed At
Zelnick of Deutsche Bank also projects in its most-likely scenario that AI revenues will make up 37% of all Microsoft’s cloud revenues in FY2029.
Hyperscale growth is contingent on the success of their AI plays, and at 70% of AI revenues, “AI plays” refers to “two unsustainable AI labs.”
To pay for their estimated $100 billion in 2026 compute spend, they had to raise over a combined $217 billion.
We are no longer in a situation where single or even double-digit demand for AI compute is sufficient.
It has “other AI revenue” at $5.2 billion, which includes all AI GPU and API access revenue.