Microsoft and Google reported strong earnings driven by AI and cloud growth. Both companies are ramping up capital expenditures significantly, reflecting high demand for their infrastructure, while user adoption of AI features continues to rise rapidly.

This article discusses the sharp drop in investor confidence in SaaS companies, driven by concerns over retention rates and future terminal values. Current revenue multiples are at a decade low, reflecting skepticism about the sustainability of the SaaS business model amid rising competition and technological shifts.

OpenAI plans to invest $1.15 trillion in hardware and cloud infrastructure from 2025 to 2035, with significant spending allocated to major vendors like Broadcom and Oracle. The article outlines projected annual spending growth and the revenue needed to support this ambitious plan, indicating a sharp increase in OpenAI's operational scale.