Ed Ludlow

is that enterprise AI adoption starting to go higher.

And what Microsoft told you last night is actually they have an increasing uptake on adoption on the co-pilot side.

We've seen data points on cloud co-work as well just in the last couple of weeks.

You put all of that together with what ServiceNow is saying last night, and there is starting to be enough critical mass to suggest that enterprise AI adoption will go up from here.

Net income was boosted by a gain in Microsoft's investment in OpenAI, lifted per share earnings by $1.02, right?

But our issue here is still how Microsoft manages the capacity issue that OpenAI presents them, as well as the circular financing issue, right?

That's the arrangement.

here is some capital, and here are the services that we'll charge you for as well.

How do you think about that, Gabriella, and whether we now shift OpenAI a bit more into the risk column for Microsoft or not?

So it's really interesting because Microsoft is taking steps to diversify their exposure to the AI ecosystem.

Last quarter, we saw Anthropic come onto Microsoft Azure for the first time.

We're also seeing Microsoft invest in their own, what they call, off-frontier Microsoft AI models.

Each of these steps diversifies the ways that Microsoft can win, independent of whether OpenAI is doing well or not.

With OpenAI in particular, what we did see last night is that $250 billion contract that was announced about three months ago now, you're now starting to see that in the backlog, and that will roll on over time.

The other positive catalyst to look for

is the fair water data centers.

They're coming online over the course of a multi-year time frame, but we'll start to get more visibility into that as we go through the next two quarters.

We've had a bit of visibility about the silicon strategy, we've had visibility about sort of the hardware side, but ultimately this company is getting caught up with software negativity.

What about Anthropic coming out?

And yes, we see relationships, partnerships, but a co-work offering that could just not co-pilot out the water.