Microsoft walks away from option to more than double its Nscale Texas AI compute deal, FT reports
The option was worth tens of billions of dollars, people familiar told the Financial Times, weeks after Microsoft quit anchoring Nscale's Loughton site in England; Nscale filed for a US IPO in September.
Why it matters
Nscale is a fast-growing British AI cloud company backed by Nvidia, and Microsoft has been its biggest named customer. Turning down a larger Texas commitment, after pulling out of the flagship Loughton project in England when its power connection slipped into the 2030s, raises questions about Nscale's growth story just as it prepares a US listing. It also hints that Microsoft is being more selective about renting outside capacity. Reuters has reported Nscale in talks with Anthropic for a deal worth about $45 billion. Watch for confirmation from either company and any change to the IPO.
Key facts
- Reported by the Financial Times on 5 November 2026, citing people familiar
- Option would have more than doubled Microsoft's Texas agreement
- Potential value: tens of billions of dollars
- Microsoft earlier quit anchoring Nscale's Loughton, Essex project
- Nscale filed for a US IPO in September 2026
- Reuters: Nscale in talks with Anthropic on a deal worth about $45 billion