Observed Signal · Nov 4, 2026 · Earnings Report · Source: Tech.eu (European Tech & Deals) · Impact: 3/5 · Sentiment: Negative
Aker CEO dismisses Microsoft Nscale contract loss as minor
The CEO of Aker ASA, Øyvind Eriksen, the largest investor in UK AI infrastructure startup Nscale, downplayed Microsoft's withdrawal from a data centre deal as a "minor contract". Speaking during Aker's Q3 results presentation, Eriksen reassured investors ahead of Nscale's planned US IPO targeting a $35bn valuation. He noted that since Nscale's Series C funding round, the company's activity and contract portfolio more than doubled, and the termination was expected. Microsoft cancelled the deal to lease compute capacity from Nscale's Essex data centre due to anticipated power supply issues. Nscale is reportedly close to a new multibillion-dollar deal with Anthropic, which would increase its commitment in West Virginia. Aker owns approximately 23% of Nscale, valued at $3.31bn based on the Series C valuation.
This news highlights the volatile nature of the AI infrastructure market, with major contract cancellations and IPO ambitions, impacting investor confidence in the neocloud sector.
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Key Takeaways & Evidence Grounding
- Aker ASA CEO Øyvind Eriksen called Microsoft's cancellation of a data centre deal with Nscale a 'minor contract'.
- Aker owns approximately 23% of Nscale, valued at $3.31bn based on Nscale's Series C valuation.
- Microsoft cancelled the lease agreement due to expected power supply issues at Nscale's Essex data centre.
- Nscale targets a $35bn valuation for its planned US IPO.
- Nscale is reportedly close to a new multibillion-dollar deal with Anthropic.
Connected Companies & Entities
3 Entities mapped“UK AI infrastructure startup Nscale is preparing for a US IPO targeting a $35bn valuation.”
“Microsoft pulled out of a data centre deal with Nscale, cancelling a lease for compute capacity.”
“Nscale is reportedly close to a new multibillion-dollar deal with AI giant Anthropic.”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Nscale Loses Microsoft Before IPO, Valuation Wobbles
Microsoft has withdrawn as anchor tenant from Nscale's first UK data center in Loughton, Essex, where it planned to rent 23,000 Nvidia AI chips. This setback precedes Nscale's New York IPO under ticker NSCL, targeting a valuation of about $30 billion, but investors value the company at only $16-19 billion. Nscale's financials show H1 revenue of $140.6 million against a net loss of approximately $1 billion. Microsoft accounts for over 40% of Nscale's order backlog of $103 billion, though only $2.6 billion is from active contracts. Nscale asserts the relationship remains strong and is seeking alternative power sources, as grid delays may persist until the 2030s. The company faces broader industry challenges, with rivals like Firmus canceling IPOs and expectations that only 7-10 neoclouds will survive.
Nscale Soars to $14.6B Valuation with Nvidia's Backing
AI data center startup Nscale raised $2 billion in a Series C at a $14.6 billion valuation, the company announced. The round featured investment from Nvidia and was led by Aker ASA and 8090 Industries, with participation from Astra Capital Management, Citadel, Dell, Jane Street, Lenovo, Linden Advisors, Nokia and Point72. Nscale named three new board directors: Sheryl Sandberg (former Meta COO), Nick Clegg (former UK deputy prime minister and Meta executive) and Susan Decker (former Yahoo President). Founded in 2024 and UK‑based, Nscale operates data centers across the U.K., U.S., Norway, Portugal and Iceland, has partnerships with Microsoft and OpenAI, and said the funds will accelerate its vertically integrated AI infrastructure buildout across Europe, North America and Asia.
Microsoft Takes Over OpenAI's Stargate Norway Capacity
OpenAI has abandoned plans to rent compute capacity directly from the planned 230MW "Stargate Norway" data center in Narvik after failing to reach an offtake agreement with UK AI cloud startup Nscale. Microsoft is taking the compute previously earmarked for OpenAI and is expanding its Narvik agreement with Nscale, adding more than 30,000 Nvidia Rubin GPUs. OpenAI said it is now in discussions to rent capacity from Microsoft instead, citing that doing so fits existing contracted spending commitments (including a prior $250 billion Azure services contract). The move follows OpenAI's recent pause of a U.K. Stargate project and broader adjustments to its infrastructure and spending plans as the company prepares for a potential IPO.
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