(Bloomberg) – Microsoft Corp. (MSFT) has started to cancel rental contracts for a considerable amount of data center capacity in the US, a movement that can reflect concern about whether the more AI computer use is built than it needs in the long term, said TD Cowen, said TD Cowen, said TD Cowen, TD Cowen said, in a report.
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The largest backai backai has lease contracts that have achieved, written a few hundred hundred megawatts “of capacity, wrote the American Brokerage Friday, with reference to channel checks or questions with supply chain providers. Microsoft has also stopped converting the so -called qualification statements, which are similarities that usually lead to formal lease contracts, TD Cowen said. That was a tactical rivals such as Meta Platforms Inc. The brokerage wrote that it was previously used when it decided to reduce capital expenditure.
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A withdrawal of Microsoft about expenditure and data center construction raises questions about whether the company – one of the leaders under Big Tech in AI – becomes careful about the prospects for the question. The company has said it expects to spend $ 80 billion on AI Data Centers this tax year, and with a win at the end of January, Chief Executive Officer Satya Nadella said that Microsoft should retain the expenses to meet “exponentially more question” .
In a statement on Monday, Microsoft repeated his spending objective for the tax year ending in June, but refused to comment on the TD Cowen memorandum.
“Although we can strategically accelerate or adjust our infrastructure in some areas, we will continue to grow strongly in all regions,” said a company spokesperson in the explanation. “Our plans to spend more than $ 80 billion on infrastructure, this FY stays on schedule while we continue to grow at a record pace to meet customer demand.”
Critics have consistently pointed out a lack of practical, real-world applications for AI, even such as Microsoft, Meta and Amazon.com Inc. have promised to spend billions on the data centers needed to train, develop and host AI services.
Wall Street stepped up to his questions about the enormous expenditure after the Chinese Upstart Deepseek had released a new open-source AI model that claims that the skills of American technology are against a fraction of the costs.
“Although we still have to get the level of color through our channel controls that we would like to do this, our first reaction is that this is linked to Microsoft who may be in an oversupply”, TD Cowen analysts Michael Elias, Cooper Stander and Gregory Williams wrote and emphasized that it was just their interpretation.
