Comment on Microsoft has 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

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Blue_Morpho@lemmy.world ⁨8⁩ ⁨hours⁩ ago

Like games have diminished returns on better graphics (it’s already photo realistic few pay $2k on a GPU for more hairs?), AI has a plateau where it gives good enough answers that people will pay for the service.

If people are paying you money and the next level of performance is not appreciated by the general consumer, why spend billions that will take longer to recoup?

And again data centers aren’t just used for AI.

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