Ed Ludlow

revenue growth strong, and then they boosted the capex range for the year beyond consensus.

It's a simple formula we're repeating.

Microsoft's Azure cloud unit growth 38%, in line with estimate consensus.

But at the top end, people were like, where's my 40% growth?

And they told us about their capital expenditures and those kind of exceeded and still the market was disappointed.

It's a very high bar on a simple formula that we've discussed endlessly.

Spend more on AI investment and infrastructure, but show us very strong top line growth as a direct result of it.

I would start with Tesla, but only because the story that jumped out wasn't the story we were prepared for.

And I think that it's important to be honest about that.

And that is Tesla pulling the trigger on a $2 billion investment in XAI.

If you guys remember, this was a non-binding shareholder resolution in November as part of the annual shareholder meeting.

And the outcome was kind of weird because a lot of shareholders abstained from voting.

That told us that even though the board wasn't bound to the outcome, a lot of shareholders were like, do we really want to go down that route?

Well, Tesla's done it.

Not only are they investing $2 billion into XAI through XAI's recent Series E round, but they now have an agreement in place, what they call a framework, to work on technology and product together.

And it's this closer intermesh of Elon Inc., right?

There are like 10 different answers to that.

I mean, the first thing to state is that this was, believe it or not, double check the Bloomberg, the first annual revenue decline that Tesla's ever had.

So revenues, overall revenues from all its divisions dropped 3%.

And they blame that on lower vehicle deliveries and sales and lower regulatory tax credits.