Despite OpenAI reporting a $11.5 billion loss last quarter, Microsoft’s own earnings remain strong because its accounting treats the investment under the equity method, turning the loss into a strategic subsidy rather than a financial disaster.
The article analyzes how the rise of large‑language models, the scarcity of AI‑optimized compute chips, and aggressive strategic investments by cloud giants such as Microsoft, Amazon, Google, and Oracle are reshaping competition in the cloud computing market and determining the next wave of growth.
China Telecom is creating a state‑backed “national cloud” by partnering with multiple central‑enterprise investors, consolidating resources, accelerating indigenous cloud technology, and setting ambitious infrastructure targets, while similar initiatives emerge worldwide in the US, Russia, India, France and Italy.
