Microsoft reportedly returns ~10% of GPUs contracted from Nscale in hyperscaler power play
abhiadesai · x · 2026-10-19
Per Lunari Research, Microsoft has returned GPUs representing about 5% of Nscale's total contract value and 10% of the GPUs Microsoft contracted from Nscale. The analyst argues this reflects hyperscalers' immense leverage as investment-grade tenants commanding big discounts to spot pricing, and the UK's struggle to mobilize even 50MW of power by 2030. If Nscale retains the chips, it can redeploy them at spot or premium rates to non-investment-grade customers — 'the party is far from over.'
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