(Bloomberg) — Microsoft has walked away from new information heart tasks within the US and Europe that had been set to devour 2 GW of electrical energy, in accordance with TD Cowen analysts, who attributed the pullback to an oversupply of the clusters of computer systems that energy synthetic intelligence.
The analysts, who rattled traders with a February notice highlighting leases Microsoft had deserted within the US, stated the newest transfer additionally mirrored the corporate’s option to forgo some new enterprise from ChatGPT maker OpenAI, which it has backed with some $13 billion. Microsoft and the startup earlier this yr stated they’d altered their multiyear settlement, letting OpenAI use cloud-computing providers from different corporations, supplied Microsoft didn’t need the enterprise itself.
Microsoft’s retrenchment within the final six months included lease cancellations and deferrals, the TD Cowen analysts stated of their newest analysis notice, dated Wednesday. Alphabet’s Google had stepped in to seize some leases Microsoft deserted in Europe, the analysts wrote, whereas Meta Platforms had scooped up a few of the freed capability in Europe.
Microsoft has stated it’ll spend about $80 billion constructing out AI information facilities in its fiscal yr that ends in June, however that the tempo of progress ought to start to gradual after that. Executives have stated that, after a frantic enlargement to assist OpenAI and different synthetic intelligence tasks, spending would shift from new building to becoming out information facilities with servers and different gear.
Spokespeople for Microsoft, Meta and Google didn’t instantly touch upon the analysis notice on Wednesday.
Earlier this week, Alibaba Group Holding chairman Joe Tsai warned of a possible bubble in information heart building, saying new tasks might exceed demand for AI providers.
“We proceed to consider the lease cancellations and deferrals of capability factors to information heart oversupply relative to its present demand forecast,” TD Cowen analysts Michael Elias, Cooper Belanger and Gregory Williams wrote.
