Microsoft rejects multibillion-dollar AI deal with UK’s Nscale

Microsoft has rejected a multibillion-dollar AI deal with the UK-based company Nscale. According to reports from the FT, the tech giant turned down an option that would have more than doubled its existing Texas data centre contract. This decision represents a significant setback for Nscale, occurring shortly before the start-up's planned IPO. The move highlights a shift in Microsoft's strategic approach toward its infrastructure agreements with the AI firm during this critical financial period.