AI Tokens Crashes After Microsoft Pulls Back Data Centres

The artificial intelligence (AI) tokens have plummeted. The primary reason is that Microsoft, a major tech company, is scaling back its plans to construct new data centers in various locations worldwide. 

The company had projects scheduled in places such as the UK, Australia, Indonesia, and the US, but they are either postponing or canceling them. This shift occurs as Microsoft reevaluates the extent of its investment in these centers, reflecting the current demand for AI and cloud technology.

As a result, the AI tokens, including Bittensor, Render, Grass, The Graph, Injective, Fetch AI, Cortex, and Singularity NET, have crashed down. 

According to data from CoinGecko, Render has fallen by 2.0% and is currently priced at $3.27. Similarly, the AI token The Graph has declined by 0.9%, with a current price of $0.08353. The AI token Injective has decreased by 0.7% and is currently priced at $8.49. Additionally, SingularityNET has declined by 2.7%, currently priced at $0.188. 

The news of Microsoft’s global data center delay has sparked this significant decline. The same slowdown that has hit AI tokens has also affected companies that make stuff for AI, especially their stock prices. 

As per the reports, NVIDIA, the US tech giant and well-known in AI chips, has seen its stock drop over 30% from its highest point in 2024. Additionally, AMD, the second-biggest player in AI chips, has fallen even more; its stock is now at $98, which is 47% less than its peak this year. 

Even other smaller AI companies, like C3.ai and SoundHound, have also seen a fall in their stock. The excitement around AI stocks has cooled off, and their values are dropping. The excitement around AI has pulled many people and investors in the cryptocurrency world to create new projects. 

But in the present scenario, nobody knows exactly why Microsoft is slowing down its data center plans, but people have some guesses that it could be because building these giant centers is tough; maybe they’re running into problems with construction or getting enough electricity to run them. Further, another reason could be that Microsoft is rethinking how much AI work they’ll need these centers for in the future. It’s a mix of practical issues and second-guessing their AI plans.

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