A week ago, analyst TD Cowen revealed that Microsoft had canceled leases "totalling a couple hundred MWs," with "at least two private data center operators across multiple US markets." The report also details how Microsoft "pulled back on converting negotiated and signed Statement[s] of Qualifications (SQQs)," which it added
More efficient hardware use should be amazing for AI since it allows you to scale even further.
If you can achieve scaling with software, you can delay current plans for expensive hardware. If a new driver came out that gave Nvidia 5090 performance to games with gtx1080 equivalent hardware would you still buy a new video card this year?
When all the Telcos scaled back on building fiber in 2000, that was because they didn’t have a positive outlook for the Internet?
Or when video game companies went bankrupt in the 1980’s, it was because video games were over as entertainment?
There’s a huge leap between not spending billions on new data centers ( which are used for more than just AI), and claiming that’s the reason AI is over.
If you can achieve scaling with software, you can delay current plans for expensive hardware. If a new driver came out that gave Nvidia 5090 performance to games with gtx1080 equivalent hardware would you still buy a new video card this year?
When all the Telcos scaled back on building fiber in 2000, that was because they didn’t have a positive outlook for the Internet?
Or when video game companies went bankrupt in the 1980’s, it was because video games were over as entertainment?
There’s a huge leap between not spending billions on new data centers ( which are used for more than just AI), and claiming that’s the reason AI is over.