Thu. 01/30 – Everyone Reports Earnings But Wall Street Only Wants Capex Answers.

Jan 30, 2025 17m

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Meta and Microsoft reported earnings, but all Wall Street cared about was getting Capex updates. Meta settles with… the President. Waymo’s expansion continues apace. Why Masa Son is the perfect white knight for OpenAI. And AI IS copyrightable.

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Microsoft and Meta Earnings Report

In the earnings reports for Q2 2025, Microsoft announced a 12% year-on-year revenue increase to $69.6 billion, heavily depending on its cloud and AI services. Capital expenditures rose significantly, reaching $22.6 billion, showcasing a push towards AI investment despite a dampened growth forecast for its Azure segment. Meanwhile, Meta reported a 21% increase in revenue at $48.4 billion, with significant focus on capital expenditures linked to AI as it continues to develop its Metaverse vision. Zuckerberg emphasized AI's importance in their strategy, planning substantial investments in the coming years.

Waymo’s Expansion Plans

Waymo unveiled ambitious plans to expand its autonomous vehicle testing into 10 new U.S. cities, including Las Vegas and San Diego. This strategic move aims to understand how autonomous systems perform in diverse conditions and locales. The company highlighted the need for rigorous testing to ensure the adaptability and efficacy of their self-driving technology, sparking discussions about the future of robotaxi services in urban areas.

OpenAI and SoftBank Connection

Speculations arise around SoftBank potentially investing $15 to $25 billion in OpenAI, which would make it the largest investor. This investment reflects OpenAI's desire for more independent control over its computing resources amid its close ties to Microsoft. The relationship dynamic suggested a gradual shift in control and branding as SoftBank positions itself as a key player in the AI development narrative.

AI and Copyright Concerns

The U.S. Copyright Office stated that AI tools can assist in creative processes without compromising copyright protections, provided there is human authorship involved. This marks a significant affirmation of AI's legitimacy in creative fields, encouraging its continued adoption in industries like filmmaking. Additionally, the Authors Guild is initiating a project to certify books as 'human-authored,' aiming to differentiate them from AI-generated content and address market concerns.

Life Lessons from Insomnia

In a lighter end to the episode, the host shares intriguing historical insights gleaned during a night of insomnia. The examples illustrate the gradual transition from sail to steamships, emphasizing economic factors behind such changes, and provide a cultural nugget about the 'Down Easter' sailing ship. This whimsical segment serves to highlight the continual interplay of technology and history.