Tech giants will pull back as LLM performance plateaus

June 30, 2025

🗓️ Posted on: 30th June 2025

🌍 Industry pulse

• The entire AI arms race assumes the Scaling Laws will keep delivering gains, yet new results show models converging and plateauing.
• Microsoft has already begun pulling back on datacenter / GPU spend in anticipation of this slowdown. Satya Nadella is hedging his bets.