Startups & Business2 min
Microsoft pulls out of a deal to rent 23,000 Nvidia AI chips at Nscale's UK data centre
The Telegraph reports that Microsoft cancelled its deal with Nscale to be the main tenant of a planned data centre in Essex, UK. Microsoft was to rent 23,000 Nvidia AI chips there. The site may not get grid power until the 2030s. Bloomberg, citing sources, now reports that investors are pushing back on Nscale's stock market listing at about a $30B valuation, with some urging $16B to $19B.
Why it matters: It shows that power supply, not just chips, is limiting the AI data centre boom. It also tests how much investors will pay for young AI cloud firms.