Is the end of AI hype coming? Microsoft's latest reveals definitely say so

Microsoft is not so keen on spending money on Data Centers, anymore.

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Microsoft AI end

For the past three years, AI has been everywhere, and Microsoft has always been at its forefront. From spending large sums of dollars on funding research to building data centers and expanding the capabilities of its products and services using this technology, the Redmond-based tech giant has made AI its primary focus so that its community has started to become frustrated with it.

AI here, AI there, AI everywhere. However, it seems that the AI fever might finally coming to an end, as the tech giant announced that it will cancel leases for AI Data Centers, accordinng to the latest reports.

This means Microsoft won’t be building as many AI Data Centers as it initially promised, sparking discussions on the future of this technology. After pledging $80 billion to AI advancements, Satya Nadella admits that AI is barely generating any value, and the tech industry is more focused on reaching ideas such as AGI than actually developing practical and useful AI.

So, the first thing that we all have to do is, when we say this is like the Industrial Revolution, let’s have that Industrial Revolution type of growth. The real benchmark is: the world growing at 10 percent. Suddenly productivity goes up and the economy is growing at a faster rate. When that happens, we’ll be fine as an industry.

The AI industry was also shocked by the release of DeepSeek, the Chinese-owned AI model that is as capable as OpenAI’s GPT models but developed a tiny fraction of the latter’s budget. The new model brought forward questions regarding the necessity of such large sums of money to create models that have no real value on the market.

Meanwhile, Project Stargate, which aims to research and reach AGI, was set in motion last month. It is worth a stunning $500 billion, which will be spent on building Data Centers and AI infrastructure.

However, given AI’s reticence and the fact that the business industry has yet to fully embrace technology, the hype is dwindling. Unfortunately, for all the AI enthusiasts, the numbers are not lying.

What’s your opinion on the hype of AI? Is it over, or should it be over? Let us know.

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