OpenAI Annualized Revenue Exceeds $25 Billion
Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly.SCALING BACK:OpenAI is scaling back plans to enable direct checkout within ChatGPT, opting instead to complete transactions through integrated third-party apps, The Information's Ann Gehan and Sri Muppidi. Due to users' habit of "browsing without buying" and technical barriers such as inventory synchronization and fraud prevention, only about a dozen of the millions of Shopifymerchants have actually integrated, according to the report.AI CHIP SHIPMENTS:White House officials have drafted regulations that would restrict AI chip shipments to anywhere in the world without American approval, Mackenzie Hawkins of Bloomberg reports, citing people familiar with the matter. The proposed regulations would require companies to seek U.S. permission for virtually all exports of AI accelerators from companies like Nvidiaand AMD, an expansion of curbs that currently cover around 40 countries, sources tell Bloomberg.ANNUALIZED REVENUE:AI startup OpenAI topped $25B in annualized revenue as of the end of last month, The Information's Sri Muppidi, citing a person familiar with the matter. This is a 17% increase from the $21.4B in annualized revenue that the company generated at the end of the year, the author adds.EXTREME REASONING:OpenAI is preparing to launch GPT-5.4, with an "extreme" reasoning mode and a 1M-token context window, matching past models but up from GPT-5.2's 400K, The Information's Stephanie Palazzolo.SUPPLY CHAIN RISK:An industry group of big tech companies has expressed concern to U.S. Secretary of Defense Pete Hegseth about his declaring Anthropic a supply chain risk, saying it creates uncertainty for companies that could threaten the military's access to the best products and services, Karen Freifeld of Reuters. "We are concerned by recent reports regarding the Department of War's consideration of imposing a supply chain risk designation in response to a procurement dispute," the Information Technology Industry Council, whose members include Nvidia, Amazon, and Apple, said in a letter dated Wednesday. The letter states that the declaration threatens "to undermine the government's access to the best-in-class products and services from American companies that serve all agencies and components of the federal government."HUMANOID ROBOTS:Texas Instrumentsannounced it is accelerating the safe deployment of humanoid robots into the real world with Nvidia. By combining TI's real-time motor control, sensing, radar and power technologies with Nvidia's advanced robotics compute, ethernet based sensing and simulation technologies, robotics developers can validate perception, actuation and safety earlier and more accurately. TI connects Nvidia physical AI compute to real-world applications with deterministic control, sensing, power and safety at every joint and subsystem. This partnership will help developers move faster from virtual development to production-ready, scalable and safety-compliant systems. As part of this collaboration, TI designed a sensor fusion solution by integrating its mmWave radar technology with Nvidia Jetson Thor using Nvidia Holoscan Sensor Bridge to enable low-latency, 3D perception and safety awareness for humanoid robots. TI will showcase the solution at Nvidia GTC, March 16-19, in San Jose, California.JOB CUTS:Amazoncut jobs inside its robotics division this week, the latest reductions in a sweeping cost-cutting campaign, Business Insider's Eugene Kim. In a message to employees on Tuesday, seen by Business Insider, Amazon Robotics VP Scott Dresser described the changes as "difficult but necessary." He stressed that robotics remains a "strategic priority" even as the company restructures and pares back certain efforts. It's unclear how many employees were affected by Tuesday's cuts, the author adds.
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Microsoft Faces Worst Quarterly Performance Since 2008 Financial Crisis
- Poor Market Performance: Microsoft is on track for its worst quarterly performance since the 2008 financial crisis, with expectations of a sixth consecutive monthly decline, reflecting overall weakness in the tech sector as investors rotate into defensive industries.
- Investor Sentiment Rebounds: Despite challenges, sentiment for Microsoft on Stocktwits surged to ‘extremely bullish’ last week, with message volume increasing by 75%, indicating retail investors' confidence in its future performance, particularly in the AI and cloud computing sectors.
- Analyst Ratings Optimistic: Bank of America reinstated coverage on Microsoft with a ‘Buy’ rating and a $500 price target, about 40% above the current level, citing its leading position in AI cloud and enterprise software markets as a driver for sustained mid-double-digit growth.
- Valuation Attractiveness Increases: Microsoft's 12-month forward P/E ratio has fallen to its lowest level in nearly a decade, with an RSI of 22.26 indicating oversold conditions that may signal a rebound opportunity, although skepticism about its future remains prevalent in the market.
Microsoft: A Safe AI Investment for Retirees
- Diversified Business Advantage: Microsoft showcases strong diversification through its gaming, cloud computing, office software, and devices, with multiple segments achieving double-digit growth in the most recent quarter, enhancing its competitive edge in the AI sector.
- Stable Revenue Structure: With 80% of revenue coming from services and other businesses, Microsoft's service sales rose by 21% despite only 1% growth in product sales, indicating a stable income source even during economic downturns, which boosts investor confidence.
- Attractive Valuation: Trading at a price-to-earnings ratio of only 22, in line with the S&P 500 average, and generating over $119 billion in profit over the past 12 months, Microsoft's stock presents an appealing option for risk-averse investors.
- Dividend Return: Offering a dividend yield of about 1%, Microsoft enhances its attractiveness as a long-term investment, particularly for retirees seeking stable cash flow alongside capital appreciation.
Microsoft Shares Slightly Up as AI Investment Outlook Draws Attention
- Stock Performance: Microsoft closed at $358.96 on Monday, up 0.61%, as investor sentiment improved due to AI product updates and Copilot expansion, despite its weak year-to-date performance.
- Surge in Trading Volume: The trading volume reached 41 million shares, nearly 16% above the three-month average of 35.3 million shares, indicating strong institutional demand that may support the stock price.
- Impact of AI Investment: As AI-driven spending continues to rise, Microsoft faces pressure on cloud margins, although the rollout of Copilot supports long-term demand; however, the scale of investment limits near-term earnings growth.
- Market Context: The stability of Microsoft's stock amidst broader tech weakness reflects market concerns about its ability to convert future AI revenues, even as analysts note it is not currently among the top investment picks.
Microsoft Shares Slightly Rise as AI Investments Boost Market Confidence
- Stock Performance: Microsoft (MSFT) closed at $358.96 on Monday, up 0.61%, as AI product updates and Copilot expansion provided a boost despite weak year-to-date performance.
- Increased Trading Volume: The trading volume reached 41 million shares, nearly 16% above the three-month average, indicating strong institutional demand and reflecting market expectations for Microsoft's future growth.
- Impact of AI Investments: The expansion of AI tools across Microsoft 365 and other enterprise products may limit near-term earnings growth, but long-term demand support could stabilize revenue growth for the company.
- Market Environment: Despite broader tech weakness, Microsoft's stock decline and lower valuation have partially priced in risks, leading investors to focus on whether AI-driven sales can grow quickly enough to offset spending pressures.
BeyondTrust CTO Discusses Identity Security and AI Integration
- Importance of Identity Security: At the 2026 RSA Conference, BeyondTrust CTO Marc Maiffret emphasized the critical role of identity security in modern cybersecurity, noting that as cyberattacks increase, businesses must prioritize identity management to protect sensitive data.
- Integration of AI and Machine Learning: Maiffret discussed how the BeyondTrust Pathfinder platform integrates AI and machine learning technologies to enhance security through intelligent identity and access management, effectively reducing potential security threats.
- Technological Breakthrough Outlook: He also mentioned an upcoming significant technological breakthrough in cybersecurity that could transform the identity security landscape, helping businesses better navigate complex cyber environments and evolving attack vectors.
- Industry Leadership: BeyondTrust, as a global leader in identity security, serves 20,000 customers, including 75 of the Fortune 100, showcasing its strong capabilities in managing the identity attack surface and neutralizing threats, further solidifying its market position.
Nebius Signs $27 Billion AI Deal with Meta Platforms
- Major Partnership Agreement: Nebius has signed a $27 billion AI infrastructure deal with Meta Platforms, ensuring that Meta secures sufficient computing power over the next five years to support its AI model development, showcasing Nebius's strong competitive position in the AI cloud computing sector.
- Market Validation: The deal's value exceeds Nebius's previous company valuation, marking a significant recognition of its status as an emerging cloud provider and proving the viability of its business model, which attracts increased investor interest.
- Technological Investment: Nebius will provide Meta with $12 billion worth of computing capacity using Nvidia's latest Vera Rubin chips, a technological choice that will significantly enhance Meta's competitiveness in the AI space, ensuring it stays ahead in technological advancements.
- Strategic Expansion: This agreement not only deepens the collaboration between Nebius and Meta but also complements other significant investments from Nvidia and Microsoft, further solidifying Nebius's critical role in the global AI infrastructure market.
Microsoft Faces Worst Quarterly Performance Since 2008 Financial Crisis
- Poor Market Performance: Microsoft is on track for its worst quarterly performance since the 2008 financial crisis, with expectations of a sixth consecutive monthly decline, reflecting overall weakness in the tech sector as investors rotate into defensive industries.
- Investor Sentiment Rebounds: Despite challenges, sentiment for Microsoft on Stocktwits surged to ‘extremely bullish’ last week, with message volume increasing by 75%, indicating retail investors' confidence in its future performance, particularly in the AI and cloud computing sectors.
- Analyst Ratings Optimistic: Bank of America reinstated coverage on Microsoft with a ‘Buy’ rating and a $500 price target, about 40% above the current level, citing its leading position in AI cloud and enterprise software markets as a driver for sustained mid-double-digit growth.
- Valuation Attractiveness Increases: Microsoft's 12-month forward P/E ratio has fallen to its lowest level in nearly a decade, with an RSI of 22.26 indicating oversold conditions that may signal a rebound opportunity, although skepticism about its future remains prevalent in the market.
Microsoft: A Safe AI Investment for Retirees
- Diversified Business Advantage: Microsoft showcases strong diversification through its gaming, cloud computing, office software, and devices, with multiple segments achieving double-digit growth in the most recent quarter, enhancing its competitive edge in the AI sector.
- Stable Revenue Structure: With 80% of revenue coming from services and other businesses, Microsoft's service sales rose by 21% despite only 1% growth in product sales, indicating a stable income source even during economic downturns, which boosts investor confidence.
- Attractive Valuation: Trading at a price-to-earnings ratio of only 22, in line with the S&P 500 average, and generating over $119 billion in profit over the past 12 months, Microsoft's stock presents an appealing option for risk-averse investors.
- Dividend Return: Offering a dividend yield of about 1%, Microsoft enhances its attractiveness as a long-term investment, particularly for retirees seeking stable cash flow alongside capital appreciation.
Microsoft Shares Slightly Up as AI Investment Outlook Draws Attention
- Stock Performance: Microsoft closed at $358.96 on Monday, up 0.61%, as investor sentiment improved due to AI product updates and Copilot expansion, despite its weak year-to-date performance.
- Surge in Trading Volume: The trading volume reached 41 million shares, nearly 16% above the three-month average of 35.3 million shares, indicating strong institutional demand that may support the stock price.
- Impact of AI Investment: As AI-driven spending continues to rise, Microsoft faces pressure on cloud margins, although the rollout of Copilot supports long-term demand; however, the scale of investment limits near-term earnings growth.
- Market Context: The stability of Microsoft's stock amidst broader tech weakness reflects market concerns about its ability to convert future AI revenues, even as analysts note it is not currently among the top investment picks.
Microsoft Shares Slightly Rise as AI Investments Boost Market Confidence
- Stock Performance: Microsoft (MSFT) closed at $358.96 on Monday, up 0.61%, as AI product updates and Copilot expansion provided a boost despite weak year-to-date performance.
- Increased Trading Volume: The trading volume reached 41 million shares, nearly 16% above the three-month average, indicating strong institutional demand and reflecting market expectations for Microsoft's future growth.
- Impact of AI Investments: The expansion of AI tools across Microsoft 365 and other enterprise products may limit near-term earnings growth, but long-term demand support could stabilize revenue growth for the company.
- Market Environment: Despite broader tech weakness, Microsoft's stock decline and lower valuation have partially priced in risks, leading investors to focus on whether AI-driven sales can grow quickly enough to offset spending pressures.
BeyondTrust CTO Discusses Identity Security and AI Integration
- Importance of Identity Security: At the 2026 RSA Conference, BeyondTrust CTO Marc Maiffret emphasized the critical role of identity security in modern cybersecurity, noting that as cyberattacks increase, businesses must prioritize identity management to protect sensitive data.
- Integration of AI and Machine Learning: Maiffret discussed how the BeyondTrust Pathfinder platform integrates AI and machine learning technologies to enhance security through intelligent identity and access management, effectively reducing potential security threats.
- Technological Breakthrough Outlook: He also mentioned an upcoming significant technological breakthrough in cybersecurity that could transform the identity security landscape, helping businesses better navigate complex cyber environments and evolving attack vectors.
- Industry Leadership: BeyondTrust, as a global leader in identity security, serves 20,000 customers, including 75 of the Fortune 100, showcasing its strong capabilities in managing the identity attack surface and neutralizing threats, further solidifying its market position.
Nebius Signs $27 Billion AI Deal with Meta Platforms
- Major Partnership Agreement: Nebius has signed a $27 billion AI infrastructure deal with Meta Platforms, ensuring that Meta secures sufficient computing power over the next five years to support its AI model development, showcasing Nebius's strong competitive position in the AI cloud computing sector.
- Market Validation: The deal's value exceeds Nebius's previous company valuation, marking a significant recognition of its status as an emerging cloud provider and proving the viability of its business model, which attracts increased investor interest.
- Technological Investment: Nebius will provide Meta with $12 billion worth of computing capacity using Nvidia's latest Vera Rubin chips, a technological choice that will significantly enhance Meta's competitiveness in the AI space, ensuring it stays ahead in technological advancements.
- Strategic Expansion: This agreement not only deepens the collaboration between Nebius and Meta but also complements other significant investments from Nvidia and Microsoft, further solidifying Nebius's critical role in the global AI infrastructure market.
