Markets
Microsoft pulls back, AI cloud stocks tumble
Microsoft passed on a bigger deal with Nscale and is tightening oversight of its AI cloud partners. Their shares fell sharply.
In short
-13%fall in Nebius and IREN shares
- Nebius, IREN: down 13%+
- CoreWeave: double-digit fall
- Existing Nscale contract unchanged
What happened
According to Bloomberg, Microsoft is keeping a closer eye on AI cloud providers Nscale, Nebius and IREN after construction delays and rising costs, and is leaning more on its own data centers. It declined an option to expand its Texas deal with Nscale; the existing contract stays.
Nebius and IREN shares fell more than 13%, and CoreWeave fell by double digits.
Why it matters
These 'neoclouds' rent out AI computing power, and much of their value depends on big customers like Microsoft. Any sign that the giants are slowing down hits them hard — and it added to the wider sell-off in AI and chip stocks on Wall Street this week.
