Critics have consistently pointed out a dearth of practical, real-world applications for AI, even as Microsoft, Meta and Amazon.com Inc. have pledged to spend billions on the data centres needed to train, develop and host AI services. — Photo by Lumière Rezaie on Unsplash
Microsoft Corp. has begun cancelling leases for a substantial amount of data centre capacity in the US, a move that may reflect concerns about whether it’s building more AI computing than it will need over the long term, TD Cowen said in a report.
OpenAI’s biggest backer has voided leases totalling "a couple of hundred megawatts” of capacity, the US brokerage wrote Friday, citing channel checks or inquiries with supply chain providers. Microsoft has also stopped converting so-called statement of qualifications, which are agreements that usually lead to formal leases, TD Cowen said. That was a tactic rivals such as Meta Platforms Inc. employed previously, when it decided to cut back on capital spending, the brokerage wrote.
