Slow AI adoption may be a bigger drag on Microsoft performance than previously expected. Oppenheimer’s Timothy Horan says in a report that Open AI losses for Microsoft could be in the $2 billion-$3 billion range in 2025 and may mean that current consensus estimates for revenue and EPS are also too high. “We reiterate the Street is likely overestimating near-term AI revenues as enterprise adoption and infrastructure remains a bottleneck,” Horan says, who downgrades the its rating to perform from outperform. This may be only a near-term issue however, since Microsoft is investing in a once-in-a-generation technology which could deprioritize expanding margins in the short-term.