📉 Microsoft cancels AI Data Centers

Welcome, AI enthusiasts

A research note written by TD Cowen analysts says Microsoft has cancelled leases in the U.S. with at least two private data-center operators.

Is Microsoft starting to have doubts about artificial intelligence demand?

Let’s dive in!

In today’s insights:

• Microsoft cancels AI Data Centers

• Google prices Veo 2 at $0.50 per second

• 1x Tech’s Humanoid robots for the home

Read time: 4 minutes

LATEST DEVELOPMENTS

MICROSOFT
📉 Microsoft cancels AI Data Centers

Evolving AI: Microsoft is cutting back on AI data center expansion, canceling leases and shifting spending.

Key Points:

• Microsoft has voided leases for hundreds of megawatts of data center capacity.

• Spending is shifting from international projects to US-based infrastructure.

• Analysts suggest Microsoft may be reassessing AI demand or avoiding oversupply.

Details:

Microsoft is scaling back its AI data center expansion, canceling leases for significant capacity in the US. Analysts at TD Cowen report that the company has walked away from multiple agreements, including sites with over a gigawatt of capacity. Some see this as a sign of caution — despite Microsoft's $80 billion AI infrastructure budget, it may be adjusting its long-term outlook. A separate $100 billion joint venture between OpenAI and SoftBank could also be reshaping Microsoft's investment plans.

Why It Matters:

Microsoft has been one of the biggest investors in AI infrastructure, so this shift raises questions about the long-term demand for AI computing. A slowdown in spending could signal a more measured approach to AI growth — or concerns that the industry is scaling too fast. Does this suggest AI expansion is peaking, is it just a short-term adjustment, or is it the DeepSeek effect?

GOOGLE
🎞️ Google prices Veo 2 at $0.50 per second

Evolving AI: Google DeepMind has set pricing for Veo 2, its AI video model, starting at $0.50 per second.

Key Points:

• Veo 2 costs $1,800 per hour through Google’s Vertex cloud platform.

• OpenAI’s Sora has a $200 monthly fee with no usage cap.

• Traditional filmmaking costs significantly more, with "Avengers: Endgame" at $32,000 per second.

Details:

Google DeepMind has revealed how much it costs to generate videos using its Veo 2 model. Through Google's Vertex cloud, Veo 2 runs at $0.50 per second — $1,800 per hour. OpenAI's Sora, a competing model, offers a fixed $200 monthly fee without usage limits. While Veo 2 is expensive compared to some AI tools, it’s still far cheaper than traditional filmmaking, where big-budget productions spend tens of thousands per second. However, costs don’t stop at AI generation — human input and multiple iterations add to the final expense.

Why It Matters:

AI video generation is getting more advanced, but costs vary widely. While Veo 2 is far cheaper than traditional production, it’s still priced higher than OpenAI's offering. For now, AI-generated video remains an evolving tool rather than a full replacement for human-led filmmaking.

1X TECHNOLOGIES
🦾 1x Tech’s Humanoid robots for the home

Evolving AI: Norwegian company 1X showed its new home robot, Neo Gamma. It is built to help with everyday tasks and real-world testing.

Key Points:

• Neo Gamma is a robot that can do housework like vacuuming and making coffee.

• Most companies focus on factories, but 1X wants to test robots in homes first.

• OpenAI supports 1X, showing big interest in AI robots.

Details:

1X has introduced Neo Gamma, the next step in its home humanoid project. Designed with a softer, more approachable form, the robot aims to navigate home environments while performing basic household tasks. Unlike competitors that prioritize warehouses and factories, 1X is testing in-home applications early. While the technology still has major hurdles in cost, safety, and reliability, the company is working on AI and teleoperation systems to improve real-world usability.

Why It Matters:

Most humanoid robots are built for factories, but 1X is taking a different approach — testing real-world home use now rather than later. The challenge? Making them safe, reliable, and affordable enough to be useful.

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