Microsoft stops growing its data centers because of changing needs for AI.
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Microsoft is slowing down some data center work. This includes a big project in Ohio that cost one billion dollars. They might not need as many computers for AI as they thought before.
The company is stopping early work in Ohio. They will keep some land for farms. Microsoft said that cloud and AI grew a lot, so they made a big plan to build more things.
Microsoft said they need to change plans as they learn. They are slowing down some early projects. The company did not say what other projects are slowing besides Ohio.
Analysts think the changes are because of OpenAI. OpenAI wanted more advanced AI, but Microsoft might not have. Microsoft and OpenAI changed their deal, so OpenAI can build its own computers.
AI needs a lot of power, so companies want more energy. Microsoft plans to spend a lot of money on AI this year. The company says they will still grow, but they will plan carefully.
Questions
Why is Microsoft slowing down some data center work?
They might not need as many computers for AI as they thought before.
What is happening to the project in Ohio?
The company is stopping early work in Ohio but will keep some land for farms.
What do analysts think about the changes at Microsoft?
Analysts think the changes are because of OpenAI and its need for more advanced AI.
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