Microsoft rejects expanded contract with Nscale

Microsoft has rejected an option to more than double its existing contract to rent computing power from UK-based AI start-up Nscale in Texas. The setback occurs as Nscale prepares for an IPO this year and seeks new customers to finance its debt-laden AI infrastructure buildout. Nscale's flagship sites have faced various challenges, including construction delays and the cancellation of a previous deal with Microsoft. Open article →