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Microsoft to spend heavily to build its own AI chip cluster and become 'self-sufficient,' AI CEO says in leaked meeting

1. Microsoft plans heavy investments in AI chip cluster for self-sufficiency. 2. CEO Suleyman emphasizes independence from OpenAI amidst contract renegotiations. 3. New MAI-1-preview AI model initially trained on limited hardware. 4. Drifting partnership with OpenAI may open new competitive opportunities. 5. Microsoft aims to build top-tier AI models in-house going forward.

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Why Bullish?

Microsoft's push for self-sufficiency in AI reduces reliance on OpenAI, increasing long-term competitive advantage. Historical examples, such as AMD's chip development, show stock price increases following major investments in technology independence.

How important is it?

The article outlines significant strategic moves by Microsoft that could redefine its market position, hence a strong potential impact on its stock performance.

Why Long Term?

The investments in AI chips signal a strategic shift that will take time to materialize in revenue and performance but could position Microsoft decisively in the AI market over several years.

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