This Week In AI Business: The AI Supply Bottleneck [Week #18-2025]
In one of the latest weekly issues, I highlighted how we’re still at the CapEx stage of AI, with all its implications.
I want to show you how this is reflected in Microsoft’s latest financials and what they tell us about the future.
I heard many misleading analyses in the industry, such as “Microsoft is canceling its data center contracts. Therefore, the bubble is busting.”
Which completely misses the point of an underlying reality.
Let me show you why.
The weekly newsletter is in the spirit of what it means to be a Business Engineer:
We always want to ask three core questions:
What’s the shape of the underlying technology that connects the value prop to its product?
What’s the shape of the underlying business that connects the value prop to its distribution?
How does the business survive in the short term while adhering to its long-term vision through transitional business modeling and market dynamics?
These non-linear analyses aim to isolate the short-term buzz and noise, identify the signal, and ensure that the short-term and the long-term can be reconciled.