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.
Here’s what to know:
• 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
• Reuters could not immediately verify the report
• Microsoft and Nscale did not immediately respond to requests for comment outside business hours
• Nvidia-backed Nscale filed for a US initial public offering in September, with Microsoft and Anthropic expected to be among its major customers
• 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)
