Microsoft says ‘big No’ to UK’s most-valuable startup Nscale; as Texas datacentre troubles haunt

Microsoft has rejected an option to expand its existing deal with Nscale for computing power at a Texas data centre. The update comes as a fresh setback to the UK’s most valuable AI start-up as it prepares for a potential $35 billion stock market listing. The US software giant has decided not to take up an option to lease additional computing capacity worth tens of billions of dollars, according to people familiar with the matter cited by the Financial Times (FT). As per the report, the decision could force Nscale to find new customers for the site or risk losing billions of dollars in potential future revenue.

Why Microsoft rejected Nscale’s Texas data centre deal