Microsofts

Microsoft’s problem is not having lost a quarter of its value in three months. It’s just that he’s been wrong for a long time.

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It seems like not so long ago when many celebrated Microsoft’s commitment to Azure. The decision of Satya Nadella Focusing on cloud computing soon began to translate into good financial results, propelling the Redmond company to achieve record revenue figures. But there was something more relevant in that movement: the realization that it could generate enormous benefits beyond Windows. That strategy, started in 2014ended up marking a before and after that became especially visible in 2019, when the firm reached for the first time a market capitalization of one trillion dollars. However, not even the most long-term oriented strategists, like Nadella, are free from errors. Microsoft has been chaining questionable decisions for some time that have ended up having a direct impact on its quarterly results. Specifically, the company has lost almost a quarter of its value in just three months. To put it in context, we are talking about its largest quarterly drop since the 2008 financial crisis. A decline of this magnitude, logically, does not go unnoticed. From cloud leadership to a strategy under pressure If we want to understand why the story has gone wrong, we have to start with the most obvious: the market has reacted harshly and, above all, selectively. In the first quarter of 2026, Microsoft lost about 23% of its stock market value, according to CNBCwhile the Nasdaq lost around 7%. It is not a minor movement, among other things because we are talking about a drop of a magnitude that has not been seen in almost two decades. This gap compared to the rest of the sector begins to point out problems that go beyond the general context. For a time, the commitment to OpenAI was seen as one of Microsoft’s great strategic successes, and it is not difficult to understand why. The company has invested around 13 billion dollarss to integrate this technology into Azure and into products like Copilot, which allowed it to place itself in a very advantageous position in the race of the artificial intelligence. However, with the passage of time we have also begun to see the other side of that decision: a very high technological dependence and a growing pressure to justify that deployment. As the months have passed, that close relationship has also quietly begun to change. Although Azure remains a key partner for OpenAI, the company led by Sam Altman has started to open your infrastructure to other actors to sustain the growth of its models, which increasingly require more computing capacity and energy. This does not break the alliance, but it does change its meaning, because Microsoft no longer concentrates with the same clarity all the strategic advantage that it had achieved in the first phases of the agreement. If we go down to the field of the product, where all these bets should materialize, the case of Copilot is especially illustrative. Microsoft has tried to make this assistant the axis of its new value propositionintegrating it into Microsoft 365 and a good part of its ecosystem, but the adoption It is not going at the expected pace. According to The Information, almost no one uses Copilot. What we have seen is that bringing artificial intelligence to the daily life of companies is more complex than it seemed on paper. Added to all this is a tension that is not always seen, but is very present in the backroom of this race: that of how to distribute resources in an environment of growing demand. Microsoft is investing massively in infrastructure to sustain the rise of AI, but at the same time it has to decide how it allocates that capacity between Azure and its own services. In January, CFO Amy Hood came to point out that Azure’s growth in the December quarter would have been even greater if the company had allocated more chips to the cloud instead of distributing some of that capacity among services like Copilot. Attrition is not limited to artificial intelligence, and that should also be taken into account. Also this year we have seen notable drops in income and in various areas of the Xbox ecosystemin a context also marked by previous price increases in Game Pass and on the consoles. It may seem like a minor front next to Azure or Microsoft 365, but it helps complete the picture of a company that has been opening too many flanks at the same time. What we have seen is that even in areas where it had a consolidated position, Microsoft is finding it more difficult to keep pace. Put all these pieces together, and what begins to emerge is an increasingly evident disconnect between Microsoft’s operational strength and the way the market is valuing its strategy. The company remains the fourth most valuable on the planetcontinues to grow, with revenue up close to 17% year-on-year in its last reported quarter and with Azure advancing 39% in the December quarter, but that strength is not translating to its price or valuation. Images | Xataka with Nano Banana 2 In Xataka | The ghost of IBM: Satya Nadella’s great challenge is to prevent Microsoft from becoming a technological fossil

OpenAI wants to eat Microsoft’s toast with its own GitHub

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The relationship between OpenAI and Microsoft has gone through better times. And when their technological alliance began, it was one of the first examples that indicated to us that all this AI was going to last for a long time. And here we find ourselves, in a much more delicate and powerful panorama in equal measure. However, now this alliance is going through one of its most tense moments, and the culprit has names and surnames: OpenAI would be developing its own code hosting platform, rivaling GitHub, which belongs to Microsoft. We tell you all the details. Why does this matter? GitHub is one of Microsoft’s crown jewels in the technology ecosystem. If OpenAI continues with this project, it would be attacking one of the most strategic businesses of its main partner and investor, the same company that has injected billions of dollars in its growth since 2019. And over the last two years, their relationship has gone from being symbiotic to being, on certain fronts, directly competitive. What exactly happened. According to account The Information, several OpenAI engineers would have been fed up with the constant GitHub service outages in recent months. So they decided to consider building their own alternative. As the medium shares, the project is still in the initial phase, so it could take months to see the light (if it ever does), but the medium assures that the possibility of selling it as a product to OpenAI clients is already being considered. At the moment no company has confirmed or denied it. Renegotiations. The crazy idea of ​​​​building your own GitHub arrives in full renegotiation of the terms of that same alliance that they forged a few years ago, a process that, according to the Wall Street Journalhas become extremely tense. As the media reports, OpenAI wants to reduce dependence on Microsoft in computing and distribution, and is also trying close the acquisition of Windsurfthe AI ​​startup from which Google also got involved to keep a good part of the talent. The problem: Microsoft has access to all of OpenAI’s intellectual property under the current agreement, and OpenAI doesn’t want that to include the purchase of Windsurf. Microsoft, for its part, offers its own AI programming tool, GitHub Copilotwhich competes directly with what OpenAI is trying to build. Media fight. According to the WSJseveral OpenAI executives have gone so far as to internally debate what they describe as a “nuclear option”: publicly accusing Microsoft of anti-competitive behavior and seeking a federal regulatory review of the contract. That is, take the fight to the legal and media arena. That this possibility is on the table says a lot about the level to which the conflict has reached. Both companies have also been fighting for some time over the percentage of participation that Microsoft would have in the new for-profit entity which OpenAI wants to become. OpenAI has until the end of the year to complete that transformation or lose $20 billion in funding it had committed to. How we got here. Microsoft first invested in OpenAI in 2019 with 1 billion dollars. In exchange, it gained the exclusive right to sell OpenAI’s tools through its Azure cloud and preferential access to its technology. For years, it was a sweetheart deal for the two: Microsoft positioned itself as a leader in enterprise AI and OpenAI got the infrastructure and money to grow. But now the market has changed a lot, and what was a relationship of mutual dependence has become a race in which the two compete on almost the same fronts: consumer chatbots, productivity tools with AI, solutions for companies, etc. For now, both companies maintain the official speech of optimism about their ability to continue building together. But the cracks are increasingly difficult to cover. In Xataka | Aragón is becoming a Spanish data center giant thanks to Amazon. There is still a big unknown

Openai and Microsoft’s convenience marriage touches its end. The divorce, surprisingly, is being friendly

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Openai and Microsoft have reached a preliminary agreement in which the new terms of their business relationship are established. In it Official announcement It is made clear that the terms of the agreement still have to define themselves, but there is a clear thing: the idyll is finally ended. Why is it important. What began as a idyllic relationship It has ended up becoming almost a toxic relationship that was preventing both companies from looking for other paths. Between 2019 and 2023 Microsoft invested more than 13,000 million in OpenAiwhat according to The New York Times gave Microsoft about 49% of OpenAi’s future benefits. OpenAi getting rid of their chains. The firm led by Sam Altman has been trying to change its structure and get become a profit company (“For-Profit”). The agreement with Microsoft, who did not want to give up his privileges, was one of the obstacles, but this agreement seems to pave the way for that business transformation. The discord clause. The original agreement included a clause that He rescinded access from Microsoft to OpenAi’s most advanced models when it is I would decide that had reached the famous General Artificial Intelligence or AGI. This clause is still part of the new agreement but has been modified according to sources close to the process Possible outposive. The agreement could “unlock” Openai both in its passage to “for-profit” and for a potential outlet. Right now OpenAi cannot get money from the general public and the traditional investment market, But it would remain managed by the NGO. The startup also indicated that it would offer at least 100,000 million dollars to the non -profit organization that will continue to control Openai’s future once it is transition to its new format. Bret Taylor, company manager, affirmed that in this way the NGO would be “one of the philanthropic organizations with more resources in the world.” Sources close to the agreement indicate that this NGO would have an OpenAI participation that would exceed 20%. What both were looking for. The long commercial relationship has been beneficial for both parties, but market growth has caused one and another to seek ways to continue growing in the AI ​​market and this agreement blocked them largely. According to sources close to the aforementioned negotiations In axios: Microsoft wanted to continue having access to OpenAi’s technology and products, something logical considering that he reverts them Like your Copilot services. Openai wanted freedom to move forward with his restructuring plans and to reach agreements with other infrastructure providers, as has happened with Oracle this week. A friendly divorce. In recent times it has been seen how both OpenAi and Microsoft have been making movements that were clearly aimed at search for a plan B In the AI ​​race. That was causing a delicate situation that now seems to soften satisfactorily for both companies. In Xataka | The marriage between Openai and Microsoft is broken at times. The problem is that both are still needing

There he learned everything he needed to build Microsoft’s empire

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Microsoft is, without a doubt, the greater professional success of Bill Gates. However, not many people know that the secret of their success was based on some failures that the millionaire committed Before founding the technological. In his autobiographical book, ‘Code Source: My beginnings’Gates reveals how this first business experience, when he was barely a teenager, was decisive to mold his vision about What Microsoft should be. This episode of Gates’s life shows that even the brightest and most successful businessmen have had to stumble learn from your mistakes. Traf-o-Data: Gates and Allen’s first attempt In the summer of 1972, Bill Gates was attended by his last year of high school, while Paul Allen was already in college. Both had met at the school computing club. They were inexperienced and have barely done a few programming projects for the school or to collaborate in projects with their teachers. However, they were presented with the opportunity to code and process telemetry data of the Alburquerque traffic using perforated paper ribbons, so both friends joined for efforts and founded Traf-O-Data. Gates himself is described in the book as a “spoiled know -allotodo” that often responded with sarcasm and disdain with a: “That is the most stupid thing I have heard.” A phrase that, who have worked with the tycoon At some point in his career at the head of Microsoft, he has surely heard on more than one occasion. Having that in mind, the experience provided by Traf-O-Data, although failed, served as learning For someone who has defined himself as self -taught. Both schoolmates created a machine equipped with a Intel 8008 microprocessor of 360 dollars that allowed to automate the reading of the paper tapes that contained the traffic data to digitize that information. Although the idea seemed promising, the company failed to be profitable. As Paul Allen remembered In an article De Newsweek, “Traf-O-Data was a good idea with a poor business model. We had not occurred to market studies and we did not know how difficult it would be to get financing from the municipalities.” In 1975, they managed to bill almost $ 17,000. Which was not bad in the case of an inexperienced young people. According to Paul Allen, he remained operational until 1980, when he already registered annual losses of $ 3,494. This first business failure, far from discouraging them, served as a test laboratory where They learned important lessons on the marketproject management and the importance of constant innovation. “Traf-o-Data is still my favorite mistake because it confirmed that each failure contains the seed of the next success,” Allen recalled. Gates assured in his book that he learned that it is not enough to have a good idea, but it is crucial to have a solid business model and a well -defined business objective. The experience with Traf-O-Data taught them to identify the real market needs (the digitalization of the data of the paper tapes) and to develop solutions that really made the difference (the machine that processed the information), skills that would forge the foundations on which Microsoft would be built. Learning to be the boss The adventure of Traf-O-Data, was also a personal level learning for Gates, somewhat awkward in terms of social skills. Before developing the machine with the processor, Gates and Allen They hired a group of students of lakeside younger than them to transcribe by hand the data of the tapes. They paid fifty cents for each tape. Then, Gates and Allen went to the Library of the University of Washington and used The university computer to process this data and generate the traffic patterns graphics that the tapes had been recorded. That He taught them to work as a teamto make quick decisions and adapt to the changes in the environment to stay in your target. Later, they created their own processing system, which allowed them to collect two dollars daily for the digitalization of the data, as well as expand their business area to other government agencies of the neighboring states to Seattle. Gates himself explained to young peoplethat they were going to graduate at the University of Arizona del Norte that errors are a fundamental part of the learning process and that you should not be afraid to commit them. Traf-o-data was the seed of What is Microsoft today. In Xataka | Bill Gates is clear about the habit of his childhood that has helped him succeed in his career: get bored In Xataka | Steve Ballmer has become a Milmillonario without founding a single company: some of his advice to achieve it Image | Flickr (World Economic Forum)

In 1996, Bill Gates saw Microsoft’s dominance in a revolutionary technology

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The recent history of technology has left countless samples that, being a reference in any sector is a double -edged sword. On the one hand, it allows you to act from a position of domination of the market, but on the other it makes you Diana of all your competition. In 1996, Bill Gates, one of the most men influential and rich in the worldhe had a great concern about him advance of a new technology that took the dream: Java, a tool that, as Gates himself confessed in an email, threatened Microsoft’s dominance In the market. Bill Gates’s great fear was not Apple According to a conversation revealed by The X accountInternal Tech Emails, in September 1996, Gates admitted Nathan Myhrvold, then Microsoft technology director and Coinventor of more 800 patentswhich was “literally losing the dream” due to the impressive ability of Java. In his mail, Gates was worried about not finding a Strategy to protect Microsoft of The huge possibilities that offered this new technology. “It seems that people could make people make competitive operating systems,” wrote the millionaire. To deal with this threat, Myhrvold wanted to take some seriousness to the matter, and proposed A strategy based on “adopt and extend”. A winning plan, although controversial This tactic consisted of two main parts: first, Microsoft would announce its support for standardization and collaborate with other organizations to develop that technology among all. Then, in the “extend” phase, Microsoft would implement the Java standard, but would add exclusive and differentiated features For Microsoft users. This would create one competitive advantage for your company and would motivate users of other brands that only offered the “basic standard”, to change the products of the Gates company. Myhrvold’s strategy turned out to be very effective for Microsoft since it managed to consolidate the Windows leadership in the market, with functions that no other operating system offered. However, it was also considered abusive. The United States Department of Justice came to “adopt, extend and extinguish” In one of your opinionsdue to the negative impact on the competition that this strategy proposed by Myhrvold had. There is always a stalking risk That a millionaire like Gates ensure that a new risk makes him “lose sleep” is no exception. Much less in the technological field, where innovation Makes the highest towers fall and makes David more insignificant into an untouchable Goliath overnight. Ask Nokia Oa Deepseek. In fact, the fear that an enemy arises from nothing and ruin all work What your company has done is a recurring fear in the CEO of large companies called “CEO paranoia“ Jensen Huang, CEO of one of the world’s greatest technology, claims to be obsessed with making a mistake in your management and that your company is ruined. “I think that when you built a company from scratch, you have experienced real adversity and have been about to close several times, that feeling remains with you,” said Huang in a Interview at the New York Times Dealbook Summit. For its part, Peter Beck, founder and executive director of the aerospace company Rocket Labhe was also very concerned about the decisions he made at the forefront of a company that participates in the current space race. “I can’t imagine getting home and sleeping deeply every night; that is simply tangible,” assured Beck a CNBC. Jeff Bezos, after raising two empires from nowhere in two different sectors, also confessed that one of its main fears They were the garagesreferring precisely to Two students from a garage They could develop the next great technological idea that unbank their companies in the current domain position. In Xataka | In 1980, Bill Gates delivered 8.75% of Microsoft to sign his friend: today Steve Ballmer is richer than Gates Image | Flickr (Billionaires Success)

Microsoft’s general director’s opinion about AI is unusual. And suspect how much the global economy will grow thanks to it

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Satya Nadella, the general director of Microsoft, has intervened in the Dwarkesh Patel podcast. During Your interesting conversation of something more than an hour and a quarter duration This executive has touched many sticks of hot actuality for its relevance in the world of technology, but in this article we propose to investigate two of them: the artificial intelligence (AI) and the Quantum computers. And Microsoft objectively has much to say in these two disciplines. With regard to quantum computers, Redmond’s have surprised us with the presentation of a new architecture expressly conceived for these machines. Majorana 1 It is the first quantum processor devised to Use the exotic particle Theoretically proposed by the Italian physicist Ettore Majorana almost 90 years ago. Whatever the really important thing is that Nadella argues that it is possible that thanks to this Microsoft technology you can put a quantum computer equipped with millions of cubits and capable of solving a very wide range of problems in just four years. Satya Nadella believes that AI is not being evaluated correctly We are all witnessing the thrilling rhythm of development that is experiencing AI. In fact, during the last two years this technology is monopolizing the attention of the great powersresearch institutions, companies, and, of course, also of users. And nothing seems to indicate that this trend will change. Not at least in the short or medium term. Satya Nadella’s speech defends the importance of AI, but, surprisingly, this executive argues that her evolution is not being evaluated in the proper way. “Thanks to AI it is possible to increase productivity (…) The real reference point is that the global economy grows 10%” “For me it makes no sense to self -proclaim (human beings) that we have reached some milestone in the field of General Artificial Intelligence (AGI for its English denomination). It is only a manipulation of the performance tests that, in my opinion, is meaningless (…) the winners will actually be the industries that Be able to use this technologywhich, by the way, is abundant. Thanks to it it is possible to increase productivity, so the economy grows at a faster rate. The true reference point is that the global economy grows 10%”, SATYA NADELLA has pointed out During his conversation with Dwarkesh Patel. It is worth not overlooking two important points of this statement from the head of Microsoft. On the one hand it is evident that it is moderating the enthusiasm that They have triggered Openai and other companies in the always controversial land of the AGI. And, what if possible is more relevant, proposes a bar to measure the development of the different AF -is being used, and that requires evaluating its direct impact on economic growth. But there is something else. Something very important. And it is that Nadella has suggested, as we have just seen, that AI could trigger a global economic growth of 10%. We will see if the time finally is right, but a priori does not sound at all far -fetched. Image | Microsoft More information | Dwarkesh Podcast In Xataka | 38% of the US experts have formed in China. They are essential to sustain their leadership

The AI ​​fires Microsoft’s income at the expense of huge investments. And now China threatens its strategy

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Microsoft has presented Its quarterly resultsand thanks to them we already know what he won in 2024 thanks to the AI: 13,000 million dollars. Of course, it is also investing 22.6 billion dollars in infrastructure … each quarter. As if that were not enough, you also have to deal with the threat of Chinese innovation. Why is it important. The figures leave a clear reading: the Financial Equation of AI remains very complex. Generating interesting income – the current ones are already, grow 175% year -on -year – requires huge infrastructure investments. And now Chinese innovation threatens to leave a part of that investment obsolete. The context. Microsoft dominates the business market thanks to its early alliance with Openai, but Deepseek’s irruptionwhich has developed more efficient and cheap models, and open source, has caused a small earthquake in the sector. Microsoft is in a race against time: it needs to monetize its great investment in AI as soon as possible, but now it receives increasing competitive pressure from China. The figures: 13,000 million dollars (annualized) in revenue per year. 22.6 billion dollars invested per quarter in infrastructure. 31% Azure growth, below expectations. 24,110 million dollars of quarterly net profit, 10% more interannual. Exceeded expectations. Marking Agenda. The consolidation of Microsoft as a leader in corporate AI is thanks to Copilot, its Microsoft 365 assistantwhich already has more than 160,000 companies using it … and have created more than 400,000 custom agents, according to the figures published by the company. Microsoft is in full transition to a model where AI is integrated into all its business lines: Windows will incorporate AI capacities in 15% of high -end laptops. LinkedIn uses AI to improve its hiring platform. Xbox Cloud Gaming continues to break records with 140 million hours transmitted. Github co -ilot It has more than 150 million active developers. And the AI ​​stars in a striking contrast in the company’s accounts: while Azure’s income, the great winner of the Nadella era, are growing slower than expected, new business lines based on AI are growing explosively: 157%. Deepen. One of the questions that leave these results is whether Microsoft will be able to maintain this level of investment if Chinese efficiency advances force a price war in AI services. Microsoft defends its strategy arguing that the demand for AI will continue to grow exponentially as the costs are reduced, thus compensating the current investments. The question is whether investors share that optimism. Outstanding image | Microsoft In Xataka | I have tried Deepseek on the web and in my Mac. Chatgpt, Claude and Gemini have a problem

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