The talk that AI is just a bubble waiting to burst was sparked by Microsoft abandoning data center projects in the United States and Europe. A top American research firm, TD Cowen, responded to the Microsoft news by saying the cancellations were due to an excess supply of data centers relative to the current demand forecast. However, the news from Microsoft is proving to be an isolated case relevant only to Microsoft’s AI operations.
This week, three of the leading AI companies, OpenAI, Alphabet, and xAI, Elon Musk’s AI startup, all said the same thing: Demand for AI is incredible. However, they also said demand for new AI models is constrained by a lack of data center capacity.
Earlier this week, OpenAI CEO Sam Altman said ChatGPT, the company’s most advanced
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