Microsoft CEO Satya Nadella faces a challenge as the company's stock dropped 19% in June, its worst month since the dot-com crash, and its 12-month stock performance (down roughly 25%) is the worst of the Magnificent Seven. An early investor in OpenAI, Microsoft implemented AI into its search engine, Bing, but now faces a dilemma over compute allocation for its Azure cloud business: allocate resources toward clients for an immediate boost to the top line, or keep more compute for itself to develop its own AI products. Less compute for Microsoft means fewer resources to develop and run its products, while disappointing growth for Azure could tank its stock. Google Cloud continues to put up massive numbers, though its free cash flow went negative for the first time in decades. Meta and SpaceX are also getting into the compute-for-hire game, offering customers alternatives as Microsoft decides how to split its compute.