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🤑 2026 AI Earnings Analysis: Microsoft, Apple, and OpenAI Revenue Breakdown

AI Generated

If you’ve followed us long enough, you know we live for separating the hype from the reality. And honestly? This week’s earnings calls were a goldmine of awkwardness.

We watched Big Tech CEOs try to explain if and how they’re actually going to make money from AI, and the answers were... let’s say, wonderfully vague.

So here's the tea: 

Apple just posted a monster $143.8 billion in quarterly revenue (up 16%!). Yup, the iPhone’s still a beast. But then, a brave Morgan Stanley analyst finally asked the one question everyone's been pondering on: "How exactly do you monetize AI?"

Tim Cook’s response was peak corporate poetry. He claimed Apple will create "great value" that "opens up a range of opportunities across products and services." Translation: It’s basically like asking someone how they plan to pay rent and them responding "vibes." 

But wait—it gets better (or worse, depending on how you feel about watching billionaires squirm).

Over at Microsoft, CEO Satya Nadella spent the entire earnings call doing what can only be described as "AI Use PR." The company posted solid numbers, we’re talking: $81.3 billion in revenue (up 17%), $38.3 billion in net income (up 21%) and a record-breaking cloud revenue of over $50 billion—but here's where it gets spicy: Microsoft dropped a jaw-dropping $72.4 billion on AI infrastructure just in the first half of this fiscal year. 

For context, they spent $88.2 billion in ALL of the previous year. That's some serious acceleration, folks. But of course, investors are sweating because both Azure (their cloud platform) and Microsoft 365 didn't grow as fast as expected. So naturally, everyone wanted to know: Is anyone actually USING all this AI stuff? 

Nadella's responses were... let's call them "creatively vague". According to him:

  • Consumer Copilot daily users grew "nearly 3x year-over-year" (but he wouldn't say the actual number)

  • GitHub Copilot has 4.7 million paid subscribers (up 75%—this one actually sounds legit!)

  • Microsoft 365 Copilot has 15 million paid seats... out of 450 million total seats (so about 3% adoption, if you're doing the math)

  • Dragon Copilot for healthcare documented 21 million patient encounters (up 3x year-over-year)

Overall, It’s like saying "I ate way more pizza this year" without admitting you ate two slices instead of one. Still, the one concrete win? Nadella claims demand "far outstrips data center supply," meaning all that new equipment is booked to capacity. But investors are still side-eyeing those billions in spending.

And then there's OpenAI, the company everyone thinks is crushing it, but plot twist: their Sora video app is actually struggling HARD

At launch in October 2025, it was a rocket ship. They hit 100,000 installs on Day One and reached No. 1 on the U.S. App Store faster than ChatGPT did. But now? The holiday season was a total buzzkill.

  • December downloads went DOWN 32%.

  • January downloads dropped another 45% to just 1.2 million.

  • Consumer spending took a 32% hit in January.

  • Current U.S. App Store ranking: No. 101 overall. Ouch.

  • Google Play ranking: No. 181 overall. Double ouch.

So what happened? 

Turns out people got bored when they couldn’t use SpongeBob and Pikachu in their AI videos anymore  (thanks, copyright controls) But hey, even a deal with Disney in December still couldn’t save the bleeding downloads.

And here's what's wild: Big Tech is expected to spend over $470 billion on AI infrastructure in 2026. Meanwhile, OpenAI doesn’t even plan to make any profit until 2030 and needs an estimated $207 billion in funding to get there. Let that sink in. They are spending money like it’s Monopoly cash and crossing their fingers it will work out eventually.

The big question Wall Street is asking: Is this brilliant long-term thinking or are we watching the world’s most expensive game of chicken? Cuz right now, the strategy seems to be:

  1. Spend ungodly amounts of money.

  2. Tell investors "trust us."

  3. Profit (hopefully).

So there you have it, folks. Big Tech is betting the farm on AI, and when pressed on how they'll make money, they give us corporate speak so vague it makes fortune cookies look specific. 

Stay tuned to see if this gamble pays off or becomes the most expensive "oops" in tech history.

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🧱 Around The AI Block

  • 😱 Amazon is laying off 16,000 employees as AI battle intensifies.

  • 🗾 Google Maps now lets you access Gemini while walking and cycling.

  • 🤔 Elon Musk’s SpaceX and xAI are reportedly holding merger talks.

  • 💰 Apple acquires Israeli startup Q.ai.

  • 🧑‍⚖️ Music publishers sue Anthropic for $3B over ‘flagrant piracy’ of 20,000 works

  • 🧬 AI tool AlphaGenome predicts how one typo can change a genetic story.

🤖 AI Workout Of The Day: How to Keep The Kids Busy With AI Generated Colouring Pages

AI Generated

Parents, listen up. Cuz Microsoft just solved a real issue with a feature that is actually... useful?

Microsoft Paint now has an AI-powered coloring book generator that turns any text prompt into printable coloring pages. You just type "a cat eating a donut on the moon" or "dinosaurs having a tea party" and boom. You get multiple black-and-white outlines ready for crayons.

How it works:

  • Prompt it: Open Paint, hit the "Coloring Book" button in the Copilot sidebar, and describe your kid's wildest dream.

  • Customize it: Want a rocket ship shaped like a pizza? Or a penguin superhero? Describe it! It’s an infinite coloring book customized to whatever weird phase your kid is in today. 

  • The "Fill Tolerance" Slider: This is the unsung hero of the update. It’s a new slider that lets you control how the paint bucket fills areas. High tolerance = color everywhere. Low tolerance = staying inside the lines. It’s perfect for kids—or adults who just want a clean digital fill.

The catch? You need a Copilot+ PC and a Microsoft account to play. These are the pricier, AI-optimized laptops with dedicated chips. But get this: Microsoft isn't the only one in the coloring game. If you're on a Mac, a phone, or an older PC, the "AI coloring revolution" is already in full swing.

Here Are Some Best Free & Easy Alternatives:

  • ColorBliss: Over 1.4 million pages created, gets you printable results in seconds, can turn your photos into coloring pages. plus no credit card needed.

  • Colorify AI: Totally free with 7 different styles (chibi, anime, etc.). It can even turn your own photos into coloring pages. 

  • iColoring AI:  Offers watermark-free downloads in PNG and PDF. Also works on literally any device.

  • GenColor AI: No sign up required, plus  great for turning family photos into coloring pages with one-click background removal.

The "Pro" Squad (For the Side-Hustlers):

  • Canva Pro: If you pay the $12.99/mo, their Magic Media tool generates up to 500 pages monthly.

  • Dzine.ai: This is the big leagues. It exports to vector SVG files, which means you can print them at any size without losing quality. Overall, it's great for making actual books to sell.

  • Coloring.app: Made by SF designers and privacy-focused. They can even help you compile multiple pages into an actual printed book.

Why go beyond Paint? While Paint is free (if you have the hardware), these third-party tools offer more "oomph." We’re talking photo-to-sketch conversion, bulk generation (50 pages at once!), and commercial licenses if you want to sell your creations on Etsy or Amazon KDP. 💰

The Bottom Line: Whether you’re using Paint's new AI or a third-party app. AI is officially the best babysitter substitute on the market.

Try this prompt structure: 

You are a professional children’s coloring book illustrator. Create a kids-friendly coloring book page based on the theme: [THEME].

Target age: [AGE RANGE]
Skill level: [Very simple / Simple / Medium]

Illustration style:
 -Clean, bold black outlines
 -No shading, no gradients, no color
 -Large, open spaces for easy coloring
 -Simple shapes, soft curves, rounded edges

Subject description:
 -Main subject: [CHARACTER / OBJECT / SCENE]
 -Emotion or vibe: [Happy, playful, calm, curious, etc.]
 -Setting or background: [Minimal / light background elements only]

Rules:
 -White background only
 -No text, letters, numbers, or watermarks
 -No overlapping lines
 -Kid-safe, cute, and non-scary
 -Centered composition, printable on A4 / US Letter

Generate one coloring page illustration suitable for printing.

Is this your AI Workout of the Week (WoW)? Cast your vote!

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