Analyst: Microsoft cancels Nscale and IREN deals to self-build compute, not rent
zephyr_z9 · x · 2026-11-07
Analyst zephyrz9 pushes back on over-reading a recent GPU deal, arguing it was likely just a 50-100MW A100 arrangement. His key claim: Microsoft has shifted its compute strategy, cancelling the Nscale and IREN rental deals in favor of owning and self-building compute. Such A100 sites can easily be converted internally to 25-40MW of Hopper racks. The thread ties into Michael Burry's earlier warning that GPU useful life isn't guaranteed now that vendors stretch depreciation from 4 to 6-8 years.
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