Microsoft has pulled back on over a gigawatt of planned data center capacity, suggesting that they do not think there is a growth future in generative AI
Microsoft has pulled back on over a gigawatt of planned data center capacity, suggesting that they do not think there is a growth future in generative AI
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Power Cut
It seems like Microsoft has recognized what a money pit OpenAI is and will continue to be. If OpenAI turns out to be a failure what happens to generative AI in general. Tech always needs a "next big thing" to grow and raise money. Mature technologies aren't useful for this purpose. Maybe tech has peaked and we're in a phase where we'll get incremental improvements with no big breakthroughs.
It could also be the result of deepseek. Microsoft could be forcing a constraint on its development in order to push innovation towards more efficient models.
What was the last breakthrough that wasn't a pile of fraud? Multicore processors?
It's been a while since I remember a truly innovative and exciting tech announcement. Web 3.0, Crypto, and now AI have all been kind of hype driven duds.