Microsoft plans to use fewer neoclouds as AI buildout shows signs of strain
Microsoft is winding down the number of neoclouds it counts as partners, picking key suppliers and focusing on its own data centers.
Australian AI data center company IREN has delayed some infrastructure deliveries for Microsoft while announcing a $15 billion spending plan. Despite a decline in AI stocks, IREN's quarterly revenue beat expectations and its shares rose 4 percent in extended trading. The company is investing heavily in computing equipment and infrastructure to support its AI cloud business.
IREN expects to spend about $15 billion on capital expenditure over the rest of its fiscal year. The delay in Microsoft's infrastructure delivery stems from customer-requested design changes and supplier timing. Microsoft is tightening oversight of neocloud providers, including IREN, amid delays and rising costs.
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- Employees at Microsoft, long known for its stability in the industry, are grappling with its decision to offer buyouts to 60,000 people as AI spending grows (Emmy Martin/New York Times) nytimes.com
- Microsoft plans to use fewer neoclouds as AI buildout shows signs of strain cnbc.com
- Iren delays Microsoft AI deliveries, plans $15b spending techinasia.com
- IREN tops quarterly revenue estimates, delays some Microsoft AI infrastructure deliveries channelnewsasia.com
