How is this negative for $Microsoft(MSFT)$ 's bottom line? It gives them optionality to back out of a contract because the neocloud firm isn't delivering. When the market opens Monday morning, the probability of $Microsoft(MSFT)$ overspending on AI buildout is reduced at the margin. The upside could be capped lower and the downside could be capped higher. $Microsoft(MSFT)$ gets to make that decision with a forecast that's updated with more information than it had when it signed the contract. This is also happening going into rate hikes.
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