Microsoft cancels leases for AI data centers, analyst says
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Re: Microsoft cancels leases for AI data centers, analyst says
#2> a couple of hundred megawatts.
So, something approximating an entire region or 10~100k H100s.
Re: Microsoft cancels leases for AI data centers, analyst says
#3Not surprised. You need massive amounts of compute for training LLMs from scratch, but practical uses of LLMs are increasingly focused on using existing models with minimal or no tweaks, which requires far less computing power.
Re: Microsoft cancels leases for AI data centers, analyst says
#4Re: Microsoft cancels leases for AI data centers, analyst says
#5Not surprised. You need massive amounts of compute for training LLMs from scratch, but practical uses of LLMs are increasingly focused on using existing models with minimal or no tweaks, which requires far less computing power.
I would like to note Bloomberg pulls these types of FUD before every NVDA earnings release. The last one they did was the false reports on Blackwell technical issues.
They have been doing it for years
"Bloomberg fined €5m over report of fake news release" - https://www.ft.com/content/32013b6a-202f-11ea-b8a1-584213ee7...
"Supermicro Statement on Bloomberg’s Claims" - https://www.supermicro.com/en/pressreleases/supermicro-state...
After Bloomberg reported a subpoena was sent to Nvidia and other unnamed technology companies...
"Nvidia Denies It Was Subpoenaed In Justice Department Antitrust Probe" - https://www.forbes.com/sites/antoniopequenoiv/2024/09/04/nvi...
Re: Microsoft cancels leases for AI data centers, analyst says
#6I guess Satya is not good for his $80B (for project Stargate) any more.
Re: Microsoft cancels leases for AI data centers, analyst says
#7I've read the first 2 paragraphs 5 times and I still can't tell if Microsoft was renting datacenters and paying for them, or if Microsoft was leasing out datacenters and decided "no more AI data centers for you, 3rd parties".
And digging further into the article didn't help either.
Re: Microsoft cancels leases for AI data centers, analyst says
#8Not surprised. You need massive amounts of compute for training LLMs from scratch, but practical uses of LLMs are increasingly focused on using existing models with minimal or no tweaks, which requires far less computing power.
I would like to note Bloomberg pulls these types of FUD before every NVDA earnings release. The last one they did was the false reports on Blackwell technical issues. They have been doing it for years "Bloomberg fined €5m over report of fake news release" - https://www.ft.com/content/32013b6a-202f-11ea-b8a1-584213ee7... "Supermicro Statement on Bloomberg’s Claims" - https://www.supermicro.com/en/pressreleases/supermi…
This is indeed worth noting.
Bloomberg seems to be a player in the market, or at least it is affected by players in the market.
It always publishes news in good rhythm with the market.
this article is just a reference, still need to wait for Microsoft's announcement
Re: Microsoft cancels leases for AI data centers, analyst says
#9Not surprised. You need massive amounts of compute for training LLMs from scratch, but practical uses of LLMs are increasingly focused on using existing models with minimal or no tweaks, which requires far less computing power.
I would like to note Bloomberg pulls these types of FUD before every NVDA earnings release. The last one they did was the false reports on Blackwell technical issues. They have been doing it for years "Bloomberg fined €5m over report of fake news release" - https://www.ft.com/content/32013b6a-202f-11ea-b8a1-584213ee7... "Supermicro Statement on Bloomberg’s Claims" - https://www.supermicro.com/en/pressreleases/supermi…
Completely agree with you re: Bloomberg's somewhat shady history of reporting. However, in this case, the article is citing a research note written by TD Cowen equity research analysts.
For example, here's another article from MarketWatch citing this same research note -- https://www.marketwatch.com/story/the-research-note-thats-ra...
Leads me to lend more credence to the news even though OP is linking Bloomberg.
Re: Microsoft cancels leases for AI data centers, analyst says
#10key piece of info at the end, looks like they are leaving the spending on datacenter to OpenAI
> Microsoft’s alliance with OpenAI may also be evolving in ways that mean the software giant won’t need the same kind of investments. In January, OpenAI and SoftBank Group Corp. announced a joint venture to spend at least $100 billion and perhaps $500 billion on data centers and other AI infrastructure.