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2026-11-05 13:12:26
[Nscale's multi-billion dollar deal with Microsoft falls through, putting its $35 billion IPO target to the test] (1) According to the Financial Times, Nscale, the UK's most valuable AI startup, has failed to reach a potential multi-billion dollar deal with Microsoft, putting its plans to achieve its $35 billion IPO target to the test. (2) Three sources familiar with the matter revealed that Microsoft refused to more than double the size of its existing data center computing power lease contract, located in Texas, USA. (3) This means that Nscale must find new customers for the data center or risk losing billions of dollars in future revenue. (4) The discontent over the construction of AI data centers across the United States has become one of the reasons why voters refused to support the incumbent Republican candidate in Tuesday's midterm elections. (5) Some incoming Democratic governors, including those in Texas, have called for an immediate halt to data center development projects.
