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Cancelling new data centers because deep seek has shown a more efficient path isn't proof that AI is dead as the author claims.
Fiber buildouts were cancelled back in 2000 because multimode made existing fiber more efficient. The Internet investment bubble popped. That didn't mean the Internet was dead.
I'm gonna disagree - it's not like DeepSeek uncovered some upper limit to how much compute you can throw at the problem. More efficient hardware use should be amazing for AI since it allows you to scale even further.
This means that MS isn't expecting these data centers to generate enough revenue to be profitable, and they're not willing to bet on further advancements that might make them profitable. In other words, MS doesn't have a positive outlook for AI.
More efficient hardware use should be amazing for AI since it allows you to scale even further.
If you can achieve scaling with software, you can delay current plans for expensive hardware. If a new driver came out that gave Nvidia 5090 performance to games with gtx1080 equivalent hardware would you still buy a new video card this year?
When all the Telcos scaled back on building fiber in 2000, that was because they didn't have a positive outlook for the Internet?
Or when video game companies went bankrupt in the 1980's, it was because video games were over as entertainment?
There's a huge leap between not spending billions on new data centers ( which are used for more than just AI), and claiming that's the reason AI is over.
