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
That’s compatible with a lack of faith in profitable growth opportunity.
So far they have gone big with what I’d characterize as more evolutionary enhancements to tech. While that may find some acceptance, it’s not worth quite enough to pay off the capital investment in this generation of compute. If they overinvest and hope to eventually recoup by not upgrading, they are at severe risk of being superseded by another company that saved some expenditure to have a more modest, but more up to date compute infrastructure.
Another possibility is that they predicted a huge boom of a other companies spending on Azure hosting for AI stuff, and they are predicting those companies won’t have the growth either.
Because investors expect it, whether it generates profit or not. I guess we will see how it changes workflows, or whether people continue to do things like they always have.
My guess is that, given Lemmy’s software developer demographic, I’m not the only person here who is close to this space and these players.
From what I’m seeing in my day to day work, MS is still aggressively dedicated to AI internally.
That’s compatible with a lack of faith in profitable growth opportunity.
So far they have gone big with what I’d characterize as more evolutionary enhancements to tech. While that may find some acceptance, it’s not worth quite enough to pay off the capital investment in this generation of compute. If they overinvest and hope to eventually recoup by not upgrading, they are at severe risk of being superseded by another company that saved some expenditure to have a more modest, but more up to date compute infrastructure.
Another possibility is that they predicted a huge boom of a other companies spending on Azure hosting for AI stuff, and they are predicting those companies won’t have the growth either.
Why would a company or government use Azure or windows if MS is compromising it with ai?
Pick a lane
Because investors expect it, whether it generates profit or not. I guess we will see how it changes workflows, or whether people continue to do things like they always have.