I think the market has completely misread Microsoft’s exit from NScale.
$MSFT pulling out could actually benefit neocloud providers like $NBIS and $IREN, which already have power capacity available and can still take on Microsoft’s business.
For example: Microsoft urgently needs capacity, but NScale says the UK grid is holding things up and it’ll take until the 2030s—so Microsoft still has to buy elsewhere.
The canceled order is a clear reminder that providers who can’t deliver will get cut. But that makes the ones who can deliver even more valuable.$NBIS
$MSFT pulling out could actually benefit neocloud providers like $NBIS and $IREN, which already have power capacity available and can still take on Microsoft’s business.
For example: Microsoft urgently needs capacity, but NScale says the UK grid is holding things up and it’ll take until the 2030s—so Microsoft still has to buy elsewhere.
The canceled order is a clear reminder that providers who can’t deliver will get cut. But that makes the ones who can deliver even more valuable.$NBIS