Nadella's AI Scrutiny, Ellison's Media Bid, and Economic Dependencies

Key Quotes

"Microsoft Chief Executive Satya Nadella is getting very hands-on in the AI race. The information reports he's now highly active in an internal Teams channel for roughly 100 of Microsoft's top technical staff, posting frequently when he thinks AI products are falling short. He also runs a weekly hour-long meeting with many of the same people, grilling them on progress and issuing directives, including consolidating how teams handle post-training, the latter stage of AI model development."

Satya Nadella is actively involved in overseeing Microsoft's AI product development, according to The Information. Nadella's direct engagement includes frequent posts in internal channels and weekly meetings to scrutinize progress and issue directives. This demonstrates Nadella's hands-on approach to ensuring AI product quality and development.

"A few weeks ago, Nadella sent an email to engineering leaders working on the consumer version of Copilot. After a manager highlighted that Google's Gemini had improved at connecting to Google Drive and summarizing photos, Nadella shot back that Microsoft's tools for connecting Copilot to Gmail and Outlook, for the most part, don't really work and are not smart."

Satya Nadella provided critical feedback on Microsoft's Copilot tools, comparing them unfavorably to Google's Gemini. Nadella's direct communication to engineering leaders highlights specific shortcomings in Copilot's ability to connect with Gmail and Outlook. This exchange underscores Nadella's focus on the practical functionality and intelligence of Microsoft's AI offerings.

"Wedbush's Dan Ives says Microsoft is poised to surprise with AI growth. He argues investors are underestimating the Azure story and the AI-driven shift about to hit Redmond heading into 2026. Calling Microsoft one of his favorite large-cap tech names over the coming years, as it sits in the sweet spot of enterprise AI deployments."

Dan Ives of Wedbush believes investors are overlooking Microsoft's potential for AI-driven growth, particularly through its Azure platform. Ives identifies Microsoft as a favored large-cap tech stock due to its strategic position in enterprise AI. This sentiment suggests a strong outlook for Microsoft's AI initiatives in the coming years.

"Paramount SkyDance is in focus after revealing that the Oracle founder had provided an irrevocable personal guarantee for $40.4 billion in equity as part of its $30 per share bid for Warner Brothers Discovery. The backing is aimed at easing Warner's concerns over the David Ellison-led group's financing."

Larry Ellison has provided a significant personal financial guarantee to support Paramount SkyDance's bid for Warner Brothers Discovery. Ellison's backing, totaling $40.4 billion in equity, is intended to alleviate financing concerns for Warner. This action highlights Ellison's substantial commitment to the proposed merger.

"Cuba's deepening economic crisis is at risk of tipping into outright breakdown, according to a report from the Wall Street Journal. The country is already facing severe food shortages, long blackouts, rising diseases, and mass emigration, with more than a quarter of the population leaving since 2020. Now, US efforts to clamp down on Venezuelan oil exports through tanker seizures and enforcement actions risk cutting off a key fuel lifeline for Cuba's power plants, transport network, and fragile private sector, raising the stakes for an economy already on the brink."

The Wall Street Journal reports that Cuba's economic situation is deteriorating to the point of potential breakdown. The country is already experiencing widespread shortages and emigration, and US actions against Venezuelan oil exports threaten to cut off a vital fuel source. This situation exacerbates Cuba's existing economic fragility.

"They write that the AI CapEx splurge keeps going into 2026 until it reaches 293% of US GDP. Three years into the boom, the only ones making money are Nvidia and AI consultants. Big Tech eventually gets its digital god, but even the sum of all human knowledge, aka stuff that people wrote on Reddit between 2017 and 2019, can't figure out how to make a return on a $400 billion annual project depreciated over two years."

TS Lombard economists Dario Perkins and Alexandros Sefontas project that AI capital expenditures will continue to grow significantly, reaching 293% of US GDP by 2026. They note that only Nvidia and AI consultants are profiting from this boom, and even large tech companies struggle to achieve returns on substantial AI investments. This perspective questions the long-term profitability of the AI spending surge.