I think the skepticism toward Microsoft is justified when you look at the underlying mechanics of their growth. With OpenAI reportedly accounting for a 45% of Microsoft’s RPO, the concentration risk is a massive red flag.
Furthermore, Microsoft’s growth is fueled by circular financing, they invest in OpenAI, for them to cycled back into Azure revenue. If you strip away this round-tripping, Microsoft's organic growth is way lower. Whereas Meta’s AI spending is internal, and their double digit revenue and profit growth are driven by their core advertising business.
