Microsoft rejects multibillion-dollar AI deal with UK's Nscale, FT reports

Microsoft Backs Out of Major Multibillion-Dollar AI Deal with Nscale

Microsoft's Decision and Its Impact on Nscale

Nov 5 (Reuters) - Microsoft has rejected an option to more than double the size of its existing agreement with Nscale to rent computing power at a Texas data center, walking away from a potential deal worth tens of billions of dollars, the Financial Times reported on Thursday, citing people familiar with the matter.

Key Details of the Abandoned Deal

Here's what to know:

Timeline and Related Developments

• The report comes weeks after Microsoft pulled out of a deal to anchor Nscale's flagship data centre project in Loughton, Essex, after power connection delays pushed its expected supply date into the 2030s

Verification and Responses

• Reuters could not immediately verify the report

• Microsoft and Nscale did not immediately respond to requests for comment outside business hours

Nscale's IPO and Other Partnerships

• Nvidia-backed Nscale filed for a US initial public offering in September, with Microsoft and Anthropic expected to be among its major customers

Potential Deals with Other AI Companies

• Reuters reported last month Nscale was in talks to sell AI computing power to Claude-maker Anthropic in a new deal that could be worth about $45 billion

(Reporting by Disha Mishra in Bengaluru; Editing by Janane Venkatraman and Mrigank Dhaniwala)