OpenAI Abandons Compute Rental Plans at Norwegian Data Center
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy MSFT?
Source: Newsfilter
- Rental Plans Canceled: OpenAI has abandoned its plans to rent compute capacity directly from Norway's Nscale data center, opting instead to negotiate with Microsoft, which may impact its future infrastructure investment strategy.
- Microsoft Takes Over Capacity: Microsoft will take over the spare compute capacity at the planned 230MW 'Stargate Norway' facility, indicating its intent to expand in the AI infrastructure space and further solidifying its market position.
- Cautious IPO Outlook: As a potential IPO looms, OpenAI has begun to temper expectations regarding its spending plans, reflecting a focus on cost control in the current economic environment.
- Continued Funding Inflow: Despite challenges, OpenAI secured a record $122 billion funding round in March, demonstrating investor confidence in its long-term growth potential, with total compute spending projected to reach $600 billion by 2030.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 411.220
Low
500.00
Averages
631.36
High
678.00
Current: 411.220
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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