Newsletter: Microsoft pulled back on over a gigawatt of planned data center capacity, suggesting that they do not think there is a growth future in generative AI. Meanwhile, SoftBank, the only company that can afford to fund OpenAI, has to take out loans to do so.
https://www.wheresyoured.at/power-cut/
https://www.wheresyoured.at/power-cut/
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I’ll be here all week. Try the steal, it’s delicious. And don’t forget to tip your grifter!
I think you're right, but there are other possibilities you don't mention.
If they were trying to time the market the projects could be delayed far more easily than they could be picked up again.
https://www.wheresyoured.at/power-cut/
Add a couple hundred megawatts: 1.2 gigawatts
Add some change: 1.21 gigawatts
https://www.wheresyoured.at/power-cut/
The ai scam bubble is deflating rather than popping
https://www.wheresyoured.at/power-cut/
https://www.wheresyoured.at/power-cut/
https://www.wheresyoured.at/power-cut/
Riddle me this, Why does a company that keeps talking about having demand that exceeds capacity decide to cancel so much capacity? Is it because they overbuilt?
https://www.wheresyoured.at/power-cut/
That, plus most the thing where GPT-4.5 isn't enormously better than GPT-4o despite 10x the compute cost
https://arstechnica.com/science/2025/03/ai-versus-the-brain-and-the-race-for-general-intelligence/
Imagine if we classified power stations by the amount of coal the burn per hour. Actually, that might be a good idea.
like, what a data center outputs changes every 5 years at minimum.
Netflix wanted to minimize customer churn, but used watch-time as the proxy for that and that led them to developing boring content you can play while you do the dishes.
US and EU are on the brink of a trade war, NATO is unraveling - I wouldn't be surprised if MS decided it's not the best time to pour billions into globe-spanning infrastructure projects
I also expect that we need to see more development before they are large enough to tackle real world problems in scale. 8 qubits is still rudimentary.
@pivotpod.bsky.social
2. why would openai be building out massive capacity too?