Microsoft canceled some leases for artificial intelligence data center capacity in the US, as investors grow skeptical over the billions Big Tech is pouring into AI infrastructure.
A report from brokerage TD Cowen suggests a possible AI computing oversupply at the US tech giant, amid broader concerns about companies overestimating long-term AI demand.
Many US and Chinese firms have gone all in on AI: OpenAI and other firms promised $500 billion for a joint AI infrastructure project, Stargate, meant to kickstart a new American “golden age,” at US President Donald Trump’s inauguration. Meanwhile, Alibaba said that it will spend more than $53 billion on projects like data centers over the next three years — the most ever spent by a private Chinese company on AI hardware.
The push is a “speculative, risky gamble” in the pursuit of artificial general intelligence, Bloomberg analysts said.
