Concerns Over Cash Flow in AI Sector
- Cash Flow Concerns: The funding flow patterns of OpenAI and Anthropic raise questions, as over half of the future cloud revenue from Microsoft, Oracle, Alphabet, and Amazon is tied to these companies, indicating a potential masking of true financial health through circular cash flows between cloud services and AI startups.
- Microsoft's Investment Returns: Microsoft's nearly $13 billion investment in OpenAI primarily consisted of Azure credits, which OpenAI used to develop AI models, resulting in a cloud bill exceeding $60 billion while generating only $25 billion in revenue, casting doubt on the sustainability of its operational model.
- Amazon's Cash Flow Struggles: Anthropic paid approximately $2.66 billion to Amazon Web Services within nine months, nearly matching its revenue at the time, highlighting the pressure on Amazon's cash flow amidst its AI investments, as the inflow and outflow of funds are almost equal.
- Market Concentration Risks: Microsoft has 49% of its future backlog of $627 billion dependent on OpenAI, while Oracle has 54% of its $553 billion future pipeline tied to OpenAI, indicating a high concentration risk that could lead to financial vulnerabilities reminiscent of the 2001 dot-com bubble.
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Technical Analysis for AI
Technical Sentiment Analysis for Sleepless AI (AI). As of , Sleepless AI (AI) is exhibiting a Buy technical sentiment. Our proprietary analysis, which aggregates 4 technical signals, shows that 3 indicators are flashing buy, while 1 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for AI stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.
Support, Resistance & Moving Averages. From a structural perspective, AI is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Sleepless AI (AI) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 0.0179 | 0.0222 | 0.0253 | 0.0296 | 0.0327 | 0.037 | 0.0401 |
| Fibonacci | 0.0222 | 0.025 | 0.0268 | 0.0296 | 0.0324 | 0.0342 | 0.037 |
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