Microsoft scraps UK datacenter deal with Nscale, clouding its IPO hopes
GaryMarcus · x · 2026-10-19
Per the Telegraph, Microsoft has pulled out of a UK datacenter deal with British neocloud Nscale at a critical moment for the startup's IPO plans. JGNuke argues another neocloud IPO is set to flop, questioning the reliability of backlog/RPO figures as signals of demand since major customers can walk away. Gary Marcus amplified the take as a warning sign for the AI compute bubble.
Related event: Microsoft Pulls Out of Nscale Data Center Deal Ahead of $35B IPO(2 posts)→
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