Is the AI Bubble already popping?
Do you think Big Tech will go down when it does or will it further consolidate and centralize power?
Microsoft cancels leases for AI data centers, analyst says
181–190 of 349 posts
Re: Microsoft cancels leases for AI data centers, analyst says
#182Seems consumers just hate every product with AI functionality.
The consumer market doesnt matter much here, imo.
I think most companies know b2b is the most lucrative segment for AI because it reduces one of their top costs - people. Companies selling AI are basically just selling the ultimate automation tool, which (in theory) is massive value for companies. Having a nice consumer product is a side gig.
Re: Microsoft cancels leases for AI data centers, analyst says
#183Microsoft said they were going to spend 80 Billion on AI data centers, and they confirmed this again, so there is no 'scaling back'.
Speculation:
I suspect after they observed the incredible speed with which Grok was able to build out a leading edge AI infrastructure themselves in Memphis, far faster than what the traditional data-centers could offer it, Microsoft might have had an epiphany and went 'wait, why are we not doing this?'
Re: Microsoft cancels leases for AI data centers, analyst says
#184Earlier quoted context omitted.
> If you want to grow the real economy, build houses and reduce the cost of living. Yes, I wonder why it is so hard for Western countries to understand that there's no future in a place where housing is more expensive than your average salary. If may look cool for a few years until most people have left or are living on the streets.
Plenty of housing. The problem is, people want cheap housing in places where everyone wants to live. I don't think that will happen any time soon.
This is a non-sense that spreads because of North American style of housing. If you're talking about sprawling suburban houses then you're right. But big cities have provided reasonable housing for lots of workers for centuries. The only thing you need is to build more apartments in the cities that have an excess of job positions.
Re: Microsoft cancels leases for AI data centers, analyst says
#185- This is a proper MSFT resource allocation commentary, not an industry wide canary in coalmine
- MSFT CapEx is up 45% YoY, positioning for inference dominance
- MSFT is prioritizing AI inference for millions of customers over massive AI training for OpenAI
- Losing inference demand risks clients moving to AWS/GCP
- MSFT taking bet that industry overbuild will lead to more attractive leasing terms in future vs owning
- OpenAI chases AGI; MSFT chases scalable, affordable AI that drives Azure adoption
- Leadership is risk adjusted - they win if OpenAI succeeds, and win if open-source wins
Re: Microsoft cancels leases for AI data centers, analyst says
#186Earlier quoted context omitted.
If LLM chatbots are making you vastly more productive in a field, you are in the bottom 20% of that field. They're still useful tools for exploring new disciplines, but if you're say a programmer and you think ChatGPT or DeepSeek is good at programming, that's a good sign you need to start improving.
If you have to tell others that then perhaps some introspection for yourself might be helpful. Comes across more as denial than constructive commentary. I do believe the benefit decreases the more senior or familiar the work is but there is still a noticeable benefit and I think it largely depends on the velocity and life cycle of the product. I think you get less benefit the slower the velocity or the more mature of…
Again, show your evidence.
You make a polite but still ad hominem "attack" about me instead of addressing my points with demonstrations of evidence.
Make a video or blog article actually showing how your use of LLMs in coding is making you more productive. Show what it's doing to help you that has a multiplier effect on your productivity.
Re: Microsoft cancels leases for AI data centers, analyst says
#187Old news and incorrect the way it is phrased : https://x.com/dylan522p/status/1894050388145508586 I'm not sure why there is so much poor reporting on accelerator demand recently, it seems there are a lot of people looking to sell a message that isn't grounded in reality.
Quite a lot of money is at stake in the control for retail investors' minds.
Lots of stupid takes get amplified by people who lack background. Look at the recent Intel/TSMC/Broadcom merger rumors. The story was "Canada could join the US" level of stupid to anyone with experience anywhere near chip fabrication but it still circulated for several days. Also, look at what it did to the stock price of INTC. Lots of money made and lost there.
Re: Microsoft cancels leases for AI data centers, analyst says
#188Microsoft said they were going to spend 80 Billion on AI data centers, and they confirmed this again, so there is no 'scaling back'. Speculation: I suspect after they observed the incredible speed with which Grok was able to build out a leading edge AI infrastructure themselves in Memphis, far faster than what the traditional data-centers could offer it, Microsoft might have had an epiphany and went 'wait, why are we…
somehow, Memphis, an ancient Egypt royal center and core of a grand imperial slave state.. is such a fitting name for these developments
Re: Microsoft cancels leases for AI data centers, analyst says
#189The thing that is driving me crazy in all these threads is that we have invariably a bunch of programmers saying "I use it for coding and I would never go back" but this is orthoganal to the question of whether it's a good business.
If you use gen-AI but don't pay the real cost, you're not really a data point on the economics of it. It could be useful to programmers and still be a terrible business if the cost of giving you that usefulness is more than you (or your employer) would pay.
Re: Microsoft cancels leases for AI data centers, analyst says
#190[dead]