Microsoft's AI Business Largely Dependent on Troubled OpenAI

Microsoft's stock price has surged almost 30% over the past month due to its quarterly filings beating Wall Street estimates. However, new information suggests that around 70% of Microsoft's AI business still depends on OpenAI.

The disclosure indicates that training platforms like ChatGPT and serving it to customers remain the cornerstone of Microsoft's AI business. This is potentially problematic and comes with a huge amount of risk for Microsoft.

Azure has turned Microsoft into an absolute powerhouse, but its AI bets still threaten that. OpenAI is estimated to be losing between $10-20 billion per year on modest revenue, which raises concerns about the long-term viability of this business model.