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WSJ Tech News Briefing

TNB Tech Minute: Microsoft Earnings Indicate OpenAI Suffered a $12 Billion Loss Last Quarter

WSJ Tech News Briefing

The Wall Street Journal

Tech News, News

4.31.7K Ratings

🗓️ 31 October 2025

⏱️ 3 minutes

🧾️ Download transcript

Summary

Plus: The flurry of Silicon Valley companies trying to build AI data centers is flooding debt markets. And Charter Communications profits fell in the third-quarter as its home internet subscriber base weakens. Julie Chang hosts. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

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0:31.3

Here's your afternoon, T&B Tech Minute, for Friday, October 31st.

0:35.8

I'm Julie Chang for the Wall Street Journal. Inside Microsoft's earnings

0:39.7

was a charge that caught analysts by surprise, a $4.1 billion hit on its investment in OpenAI.

0:46.3

The figure was up 490% from a year earlier and implies a more than $12 billion quarterly loss at Open AI, which would mark one of the

0:56.6

largest single quarter losses for a tech company in history. OpenAI CEO Sam Altman has told

1:02.6

investors to expect years of heavy losses as a company invests to be a leader in AI.

1:09.1

Meanwhile, the flurry of Silicon Valley companies trying to build AI data

1:13.1

centers is spilling into debt markets. There's been a slew of public and private mega deals

1:18.6

since last month, including an $18 billion public corporate bond sale from Oracle and a $27 billion

1:25.6

private bond for Meta's Hyperion Data Center. According to a Bank

1:30.1

of America, hyperscalers would have to spend 94% of operating cash flow to pay for their

1:36.1

AI buildouts themselves and are therefore turning to debt investors to help offset some of that

1:41.8

cost. And charter communications profits fell in the third quarter.

1:47.5

The broadband communications company reported net income of $1.14 billion, down from $1.28 billion

1:54.5

the year prior.

1:56.2

Charter is facing more competition from fixed wireless and fiber connection services, which are cutting

2:01.6

into its home internet subscriber base, though the company is seeing continued gains in its mobile

2:07.1

business. In the third quarter, total internet customers fell by 109,000, but total mobile lines

2:13.6

increased by 493,000. Its TV business, meanwhile, is struggling as viewers opt for streaming

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