微软计划将数据中心算力扩至三倍

Yeah. Then it's to be honest, it's a bit confusing because we really like the numbers. I mean, I think the cloud business was improving even more than what the street was expecting, and that's what had happened. And I think the guidance for the next quarter is also conservative. Uh, they should be able to beat that, uh, you know, block numbers as well. I think what's happening over here is there is a little bit of, uh, uh, you know, uncertainty about datacentre expansion.

So, you know, it's probably that's more macro not related just to optical. And I think that could be one factor. Um, the one thing that I liked about the earnings was that they actually said they're not going to have to raise CapEx, because that has been my biggest worry when it relates to what it is that would do. They have to keep on increasing CapEx. One of the things that are doing is they are asking customers to think about it, bring it on chips or bring your own hardware.

This way they don't have to be ahead of time. So it's really doing these arrangements and helping them out. But you know, I think it's more the macro related about datacentre expansion in general. So our Bloomberg News, uh, story written by Brody Ford. Points out as well that gross margin shrank to 61%. Um, and sequentially, that's a big drop because it was 66.3% in the previous quarter. Does that where are you on, ROG?

Well, we have been modeling that for a while. I mean, it is normally a natural whenever you have a brand new, uh, you know, business starting in the infancy, it will have very low gross margins. But imagine this they missed out massively on gross margins have been compared to last year. I shouldn't say missed, but the gross margins dropped, but their operating margins improved. They had been cutting costs so well that they're actually showing, you know, very decent operating margins.

So I personally would not worry about it because you are adding a lot of gross profit dollars to the company, which we would not get otherwise. All right. All right. We got to get this story of the day here Microsoft here. Bloomberg's got a green B which means they got exclusive reporting Brody forward Matthew De Microsoft plans to more than triple its data center capacity going from 38GW. I have no idea what a gigawatt is, but it sounds big.

Uh, up to, you know, I mean, it's gonna be up from, like, 12GW. Now, what is going on there? Who's paying for that? I mean, they have to pay for that. I mean, they're spending over to close to $200 billion a year trying to do that. And in fact, you know, the gentleman they mentioned in the report, we just we had him on our podcast six months ago. And these guys really are changing the infrastructure of all of Microsoft data centers, because the way you do GPU kind of computing, ODI computing, is very different than what you would do on a CPU based on the older cloud based.

So, I mean, they have some really impressive data centers that are going on live. Um, and there is one in Texas that is one in uh, um, uh, Wisconsin. So, I mean, they've done a very good job of managing it. And right now, whatever, they actually can't do it in-house. They are outsourcing it through neon clouds at this point. And so, uh, you know, frankly speaking, Microsoft is in the middle of this is one of the biggest beneficiaries of AI.

Um, so you, you, you know, And on top of that, you know, they would still be free cash flow positive this year. Okay. I mean, those are ambitious plans, but will they actually be able to do that? Given there's a lot of public opposition, uh, to data centers, uh, in local communities? I mean, it's one thing to say that this is what they want to do. Can it get done in the time frame they want? I think that is the single biggest, uh, you can say, obstacle right now.

On the other hand, you're not just Microsoft, but you can extend that to everybody, whether it's AWS, Google, Oracle or the new cloud is do they get the permits to be able to do it? Will they have the power? And you know, so far we have had not seen any major I would say there have been delays but not any massive delays. But frankly speaking the opposition, we are seeing it right now. Um, I would say across the board, not just with the Democrats, but Republicans as well.

I think this is going to be a bigger issue that plays out over the next 6 to 12 months. And that is one thing I could I think that is one thing that could, you know, soften the the growth rate of some of these I live as well as, you know, I would say just the entire AI trade in general. So is this in the numbers I'm looking at? I see CapEx ramping up on the Bloomberg terminal for Microsoft, but is this kind of gigawatt expenditures?

Is that in the numbers? I mean, right now I think you you have because you're looking at this year and next year, you know, almost everybody is increasing CapEx next year. You know, in our own biz, uh, projected data center model, we have Catholics going over the next few years. We have not we are not tapering it down at this point because, um, you have more backlog revenue on the balance sheet than they have the capacity to fulfill it.

Um, and the math is, you know, one gigawatt cost somewhere around, depending on what kind of data center you're building, 40 to $60 billion right now, uh, often in a data center. How are you? You know, I don't know what these guys are doing. Big numbers, big numbers. But by the way, by the way, half of that goes to Nvidia. Just think about it this way. Exactly. Which is where we all started with. Yeah. Round and round we go.

Right.