tech
OpenAI pulls back from Stargate Norway data center deal as Microsoft takes over
The AI startup is now in discussions with Microsoft about renting compute capacity
TL;DR
- OpenAI has abandoned plans to directly rent compute capacity from a Norwegian data center.
- Microsoft will instead take over the earmarked compute capacity at the Narvik facility.
- OpenAI is now in discussions with Microsoft to rent capacity, finding it more financially viable.
- The decision follows OpenAI pausing a similar project in the U.K. due to energy costs and regulations.
- Nscale, the UK AI cloud startup building the Norwegian facility, will see Microsoft expand its agreement there.
- OpenAI has previously contracted to purchase $250 billion of services from Microsoft Azure.