OpenAI Abandons Norwegian Data Center Rental Plans
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy MSFT?
Source: CNBC
- Change in Leasing Plans: OpenAI has abandoned its plan to rent compute capacity directly from a Norwegian data center, opting instead to negotiate with Microsoft, highlighting its focus on cost-effectiveness, especially in light of an impending IPO.
- Failed Capacity Negotiations: OpenAI initially aimed to lease about half of the capacity at the Narvik facility but failed to reach an agreement with Nscale, resulting in Microsoft taking over this capacity, reflecting the intense competition in the market.
- Infrastructure Investment: OpenAI had the opportunity to be an 'initial offtaker' at the data center in 2025, but paused its Stargate project in the UK due to energy costs and regulatory challenges, indicating its sensitivity to external factors.
- Continued Funding Influx: Despite facing challenges, OpenAI successfully closed a record $122 billion funding round in March, achieving a valuation of $852 billion, demonstrating investor confidence in its long-term growth potential.
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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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