Microsoft picks up the leftover space

OpenAI failed to finalize a direct offtake agreement with Nscale for the 230MW Stargate data center in Narvik, Norway, and Microsoft stepped in to take its place.

OpenAI had been discussing leasing about half the capacity of the facility at the time, but ultimately no agreement was reached. The company is now reportedly considering leasing Norwegian compute capacity from Microsoft instead, explaining that it makes more sense to handle this within the spending of contracts already signed.

Nscale announced that Microsoft is expanding its cooperation at the Narvik campus, deploying an additional more than 30,000 Nvidia Rubin GPUs. Microsoft said this infrastructure expansion is needed to meet growing demand across Europe.

OpenAI has also recently shown signs of lowering its infrastructure spending expectations.

• The UK Stargate project was halted, citing power costs and the regulatory environment
• Sora was shut down to cut costs
• In March, the company completed a major funding round worth $122 billion
• In February, it laid out a compute spending target of roughly $600 billion by 2030

Meanwhile, CNBC reported that as talk of an OpenAI IPO circulates this year, the company is moderating the pace of its massive infrastructure expansion.