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
This doesn’t really work, because the goal when you buy a video card isn’t to have the most possible processing power ever and playing video games doesn’t scale linearly so having an additional card doesn’t add anything.
If I was mining crypto, or selling GPU compute (which is basically what ai companies are doing) and the existing card got an update that made it perform on par with new cards, I would buy out the existing cards and when there are no more, I would buy up the newer cards, they are both generating revenue still.
But this is the supposition that not buying a video card makes you the same money. You’re forecasting free performance upgrades so there’s no need to spend money now when you can wait and upgrade the hardware once software improvements stop.
And that’s assuming it has anything to do with AI but the long term macroeconomics of Trump destroying the economy so MS is putting off spending when businesses will be slowing down because of the tariff war.
If buying a new video card made me money, yes.
This doesn’t really work, because the goal when you buy a video card isn’t to have the most possible processing power ever and playing video games doesn’t scale linearly so having an additional card doesn’t add anything.
If I was mining crypto, or selling GPU compute (which is basically what ai companies are doing) and the existing card got an update that made it perform on par with new cards, I would buy out the existing cards and when there are no more, I would buy up the newer cards, they are both generating revenue still.
But this is the supposition that not buying a video card makes you the same money. You’re forecasting free performance upgrades so there’s no need to spend money now when you can wait and upgrade the hardware once software improvements stop.
And that’s assuming it has anything to do with AI but the long term macroeconomics of Trump destroying the economy so MS is putting off spending when businesses will be slowing down because of the tariff war.