Microsoft has decided to withdraw from leasing two data centers intended for the training of OpenAI’s ChatGPT language model. This surprising move occurs despite the model’s ongoing popularity. The AI sector is notably competitive, with high operational costs and diminishing returns making it a challenging environment for major tech firms.

Despite this setback, Microsoft has affirmed its commitment to a substantial $80 billion investment in AI infrastructure. They stated, “We will continue to grow strongly in all regions.”

The decision involves relinquishing approximately two gigawatts of data center leases, affecting projects primarily across the United States and Europe. Experts suggest this change is largely driven by Microsoft’s reluctance to support further training workloads for OpenAI, especially considering the significant expenses tied to such operations.

In response to Microsoft’s exit, competitors like Meta and Alphabet have escalated their data center leasing to capitalize on the opportunity left by Microsoft.

Even with the withdrawal related to OpenAI, Microsoft maintains its track towards achieving its ambitious investment in AI for the year. They will strategically adjust their infrastructure while still focusing on growth.