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Microsoft has declined a major AI partnership deal with British AI infrastructure firm Nscale, according to the Financial Times. The decision, reported via First Squawk, leaves Nscale without a tie-up that would have paired its UK-based AI compute capacity with Microsoft's cloud and AI operations. The rejection comes as demand for AI data-center capacity surges across Europe, making Nscale's positioning among domestic AI infrastructure providers a focal point. Details of the deal's size and structure were not disclosed in the initial report. What to watch next: whether Nscale secures alternative hyperscaler backing and whether Microsoft pursues other UK or European AI infrastructure partners.

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Nscale, Microsoft (MSFT), Financial Times

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