---
format: "aidr-story-markdown/v1"
id: "7894e9d30d69534c961d5ab4079d3618db47e99f1c3e48c340c8197e4bc56dd3"
canonical_url: "https://aidr.today/7894e9d3?lang=en"
title: "Microsoft Cancels Anchor Deal for 23,000 AI Chips at Nscale"
lang: "en"
requested_lang: "en"
available_langs: ["en","vi"]
translation_fallback: null
fallback_fields: []
published_at: "2026-10-18T06:24:00.000Z"
category: "Infra"
topics: ["microsoft","funding"]
source_urls: ["https://marketbrief.now/ai/update-microsoft-cancels-anchor-deal-for-23000-ai-chips-at-nscale-c9cda5f5","https://x.com/Techmeme/status/2111700272468967765","https://x.com/oliviasolon/status/2110848368431845439","https://x.com/Techmeme/status/2110932691378135246","https://x.com/HedgieMarkets/status/2111148416168247425","https://huggingnews.com/ai/update-microsoft-cancels-anchor-deal-for-23000-ai-chips-at-nscale-c9cda5f5","https://www.techmeme.com/261018/p4"]
summary: "Microsoft canceled a deal for 23,000 AI chips with Nscale after construction setbacks at a planned data center in Essex, UK. The cancellation follows operational issues at other Nscale sites, including a Norway facility that is six months behind schedule due to cooling leaks and a fire, with only 6.4 MW of 30 MW currently operational. These delays have resulted in millions of dollars in penalties owed to ByteDance and Microsoft, and Nscale is pursuing an IPO targeting a $35 billion valuation."
---

# Microsoft Cancels Anchor Deal for 23,000 AI Chips at Nscale

> [Open the canonical story](<https://aidr.today/7894e9d3?lang=en>)

**Published:** 2026-10-18T06:24:00.000Z
**Category:** Infra
**Topics:** microsoft, funding

## Summary

Microsoft canceled a deal for 23,000 AI chips with Nscale after construction setbacks at a planned data center in Essex, UK\. The cancellation follows operational issues at other Nscale sites, including a Norway facility that is six months behind schedule due to cooling leaks and a fire, with only 6\.4 MW of 30 MW currently operational\. These delays have resulted in millions of dollars in penalties owed to ByteDance and Microsoft, and Nscale is pursuing an IPO targeting a $35 billion valuation\.

## Sources

- [Story source](<https://marketbrief.now/ai/update-microsoft-cancels-anchor-deal-for-23000-ai-chips-at-nscale-c9cda5f5>)
- [Story source](<https://x.com/Techmeme/status/2111700272468967765>)
- [Story source](<https://x.com/oliviasolon/status/2110848368431845439>)
- [Supporting source](<https://x.com/Techmeme/status/2110932691378135246>)
- [Supporting source](<https://x.com/HedgieMarkets/status/2111148416168247425>)
- [Story source](<https://huggingnews.com/ai/update-microsoft-cancels-anchor-deal-for-23000-ai-chips-at-nscale-c9cda5f5>)
- [Story source](<https://www.techmeme.com/261018/p4>)