Microsoft is scaling back its data center expansion despite committing $80 billion to AI and cloud infrastructure. The company canceled several leases in the U.S., raising concerns about a possible AI market slowdown.
While Microsoft insists it's strategically pacing its investments, the move caused stock dips in related industries, fueling speculation about AI demand and competition from Chinese AI firms like DeepSeek. Some analysts see this as a course correction, while others question if the AI boom is losing momentum.
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