Microsoft plans to scale back reliance on neo-cloud GPU providers, prioritizing its own data centers

Microsoft is planning to trim its roster of "neo-cloud" GPU partners, including CoreWeave, Nebius, and IREN, shifting its focus toward building its own data centers and concentrating on a smaller number of key suppliers. People familiar with the matter said Microsoft has decided not to renew its agreement with Oracle, and previously scaled back its partnership with Nscale due to challenges such as power procurement. Microsoft's capital expenditures and financing leases reached $45.2 billion in its most recent quarter, with the company stating it will continue to pace infrastructure investments based on customer demand and delivery timelines.