Flutterby™! : Microsoft says LLMs are a commodity

Microsoft says LLMs are a commodity

2026-07-30 18:54:18.838+02 by Dan Lyke 0 comments

Microsoft Q4 2026 earnings call transcript.

We offer the broadest model catalog in the cloud with over 11,000 models, including the latest from OpenAI, Anthropic, Mistral, xAI, as well as our own MAI family. Since the start of the year, we have seen 5x increase in the number of customers building with models from multiple providers.

Via Reddit /r/BetterOffline: Microsoft CEO Satya Nadella agrees that LLMs are a commodity and other notes from MSFT earnings call. Which also notes:

In other words, Microsoft tweaked an accounting assumption to shift data center leases from 15 to 25 years which means those are now treated as annual expense, not upfront capex. The cash flow doesn't change at all but the market saw lower capex and decided that yes, this was good. Note to the future: if anyone is reading this in 2051, please go check if those data centers are still running.

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