The immediate catalyst, it seems, is an intensifying focus on capex, or capital expenditures. Microsoft revealed that its spending surged 66% to $37.5 billion in the latest quarter, even as growth in its Azure cloud business cooled slightly. Even more concerning to analysts, however, was a new disclosure that approximately 45% of the company’s $625 billion in remaining performance obligations (RPO)—a key measure of future cloud contracts—is tied directly to OpenAI, the company revealed after reporting earnings Wednesday afternoon. (Microsoft is both a major investor in and a provider of cloud-computing services to OpenAI.)
“market reaction suggests that more capital isn’t going to be a viable substitute for a business model anymore.”
Time to find the next vague thing that investors can pour trillions into without really knowing what it is or does.
It’ll be quantum computing. Since the last hype around it, a lot of progress has been made to the point that quantum computers are actually becoming useful, since error correction is now mostly resolved.
The amount of cooling they need for a simple quantum CPU with 104 qubits. Can you even do anything with it that is useful, you can’t even brake encryption because you don’t have enough processing power.
The science is advancing, but then as always is the question of, how you scale it to be economical viable, which is a hard problem by it self to solve.
Don’t think the market is interested in tech that they can’t hype, or have a natural hype cycle.
Don’t forget, though, it does that one thing for that one reason I forgot already as I typed it… But its still good, clearly!