A week ago, analyst TD Cowen revealed that Microsoft had canceled leases "totalling a couple hundred MWs," with "at least two private data center operators across multiple US markets." The report also details how Microsoft "pulled back on converting negotiated and signed Statement[s] of Qualifications (SQQs)," which it added
Unfortunately I think most businesses will still prefer that their AI solution is hosted by a company like OpenAI rather than maintaining their own. There’s still going to be a need for these large data centers, but I do hope most people realize that hosting your own LLM isn’t that difficult, and it doesn’t cost you your privacy.
The cost is insane though. I think there’s a disconnect between what they want and what they can afford. I think it’s like a 10x adder per user license to go from regular office 356 to a copilot enabled account. I know my company wants it hosted in the cloud - but we aren’t going to pay the going rates. It’s insane.
Meh we’ll see. But I do wonder what happens when they get packaged up easier as a program.
Anyone running a newer MacBook Pro can install Ollama and run it with just a few commands:
brew install ollama
ollama run deepseek-r1:14b
Then you can use it at the terminal, but it also has API access, so with a couple more commands you can put a web front end on it, or with a bit more effort you can add it to a new or existing app/service/system.
Unfortunately I think most businesses will still prefer that their AI solution is hosted by a company like OpenAI rather than maintaining their own. There’s still going to be a need for these large data centers, but I do hope most people realize that hosting your own LLM isn’t that difficult, and it doesn’t cost you your privacy.
The cost is insane though. I think there’s a disconnect between what they want and what they can afford. I think it’s like a 10x adder per user license to go from regular office 356 to a copilot enabled account. I know my company wants it hosted in the cloud - but we aren’t going to pay the going rates. It’s insane.
Meh we’ll see. But I do wonder what happens when they get packaged up easier as a program.
Anyone running a newer MacBook Pro can install Ollama and run it with just a few commands:
Then you can use it at the terminal, but it also has API access, so with a couple more commands you can put a web front end on it, or with a bit more effort you can add it to a new or existing app/service/system.