A historic moment for the US AI industry since ChatGPT: Microsoft has almost如期 become the first major company to cut AI CAPEX, and the stock price was immediately rewarded by the market. It is likely not the last.

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Repost: A historic moment for the US AI industry since ChatGPT: Microsoft has almost如期 become the first major company to cut AI CAPEX, and the stock price was immediately rewarded by the market. It is likely not the last. As we said before, at least one of the CSPs will miss CAPEX, and the stock price movement also shows that funds expect the professional-manager-led Microsoft to cut capex plans with the highest probability. Today the truth came out: capex cut from $190B to $175B. Microsoft announced this cut after its earnings beat across the board last quarter, and the stock surged after the announcement. The other company, founder-led Meta, is actually not that stubborn either: its capex plan only raised the lower bound from $125B to $130B, which is almost equivalent to no longer revising up under capital pressure. This reflects an attitude: Zuckerberg cares about investment returns and market cap, and Meta is not Oracle. Of course, the market is still not satisfied: Meta's free cash flow is about to turn negative at any time. Microsoft is a top performer and still cut, so Meta should cut CAPEX even more. ...