This is a silly article. Since MSFT took a ~49% stake in OpenAI, it records its share of OpenAI's net losses in the other income line under the equity method of accounting. MSFT is offsetting its taxable income based on a prior investment
I was modeling configurations purpose-built for running specific models in specific workloads. I was trying to figure out how much of a gross margin drag some software companies could have if they hosted their own models and served them up as APIs or as integrated copilots with their other offerings
I've done the modeling on this a few times and I always get to a place where inference can run at 50%+ gross margins, depending mostly on GPU depreciation and how good the host is at optimizing utilization. The challenge for the margins is whether or not you consider model training costs as part of the calculation. If model training isn't capitalized + amortized, margins are great. If they are amortized and need to be considered... yikes
Even before LLMs were popularized, the shift to remote work made hiring awful in my experience. In finance roles, I had candidates who aced their tests and projects but then showed up to the job unable to competently use excel or write coherent sentences in English. Phone / zoom interviews all went fine, but clearly there was rampant cheating during remote projects.
Makes sense and was only a matter of time considering it has essentially no revenue growth to date this year and Non-GAAP margins in the low-to-mid 30's %. With near-0% revenue growth, investors will expect a SaaS company to post 40%+ margins.
CEG jumping 20% on the MSFT deal means it isn’t all priced in imo. Everyone has known there are rising energy needs and had bid up CEG. Then the Three Mile Island restart news hit and apparently it wasn’t already priced in
That was eerie! I felt my apartment building start to rock and sway as the walls were creaking. Not something I’m used to as a NY native, and not something I loved to experience 20+ floors above the ground.
At virtually all banks, equities analysts are banned from trading in their coverage. Banned as in, if you, your spouse, your dependents, etc. have an interest you didn't proactively disclose and dispense with you're fired on the spot.
FINRA regulation states that registered equities analysts (i.e. the ones working at banks) at a minimum cannot trade against their ratings [0]. At most / all banks there are further restrictions that ban trading in coverage.
I took undergrad quantum physics with Prof Greene and it was a great time. I definitely could have chosen a better professor for the math, but the theory and his banter was fun.