In response, Microsoft told BI it "may strategically pace or adjust our infrastructure in some areas" and will "continue to grow strongly."

Skepticism has been growing among investors over the billions of dollars U.S. tech firms have been channeling into AI infrastructure due to slow payoffs and breakthroughs at Chinese startup DeepSeek,

The move may reflect concerns about whether it’s building more AI computing than it will need over the long term, TD Cowen said in a report.