Microsoft plans to shrink new cloud partner list, prioritizing building its own data centers
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Microsoft is evaluating and plans to shrink its list of neocloud partners, shifting toward prioritizing building its own data centers. According to people familiar with the matter, Microsoft has not decided which vendors to stop using, but it has chosen not to renew its agreement with Oracle, and it previously abandoned a site with Nscale in the UK and a Texas contract. The adjustment comes as Microsoft's AI infrastructure expansion is under pressure: its capital expenditures and finance leases totaled $45.2 billion in the latest quarter. After the news emerged, shares of CoreWeave, Nebius, and IREN all fell by about half over the past month.
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- Hacker News AIMicrosoft plans to use fewer neoclouds as AI buildout shows signs of strain
Microsoft is evaluating which neocloud partners to stop using as it prioritizes its own data centers, according to people familiar with the matter, and it opted not to renew a deal with Oracle. The company has worked with CoreWeave, Nebius, Chronoscale, IREN, Lambda and Nscale, and has already scaled back work with Nscale, including a site in England and a Texas contract. Neocloud shares have fallen sharply amid rising borrowing costs and debt concerns, and Microsoft reported $45.2 billion in capital expenditures and finance leases in its latest quarter.
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