Microsoft reportedly reconsidering AI computing expansion deal with Nscale

Anthropic, an AI company, disclosed that Nvidia, Alphabet, AMD, Micron, Broadcom, Microsoft, and TSMC Partners will invest $26 billion in its IPO. Nvidia and Google each commit $10 billion, while others invest smaller amounts. The funds will support Anthropic's $900.9 billion infrastructure spending over 20 years, with $70.7 billion due by September 2027.

Microsoft is opposing a potential Trump administration ban on Chinese optical transceivers, citing risks to AI data center construction. The ban is proposed due to security concerns. Microsoft and other tech firms met with White House officials to discuss supply chain issues. Chinese manufacturers dominate the industry, and U.S. alternatives lack scale. Microsoft's shares rose 2.75% on Monday. The FCC's decision could impact AI infrastructure growth and costs.

IBM and Microsoft have partnered to launch Imagine Enterprise, a platform for large organizations to build and manage AI agents. The platform combines IBM's pre-built AI agents with Microsoft's cloud infrastructure. IBM Consulting will provide industry-specific expertise, while Microsoft supplies the foundational AI and scaling framework. The platform aims to help enterprises move AI pilots into full-scale production with built-in governance and oversight. Financial terms were not disclosed.

Seven tech companies, including Alphabet, Nvidia, and Microsoft, reportedly plan to invest $26 billion in Anthropic's IPO. The companies involved are Alphabet, Nvidia, Microsoft, AMD, Broadcom, Micron Technology, and Taiwan Semiconductor Manufacturing. Anthropic has not confirmed the figure, and the reported pricing was deemed inaccurate. The investment would be alongside the IPO offering, with Google having an option to buy up to $10 billion in Class N stock.

Oracle (ORCL) lost a $7B chip lease with Tencent (0700) and a Microsoft (MSFT) AI contract in 3 days. It raised $20B in stock and notes. Oracle denies AI demand issues but faces scrutiny over its $664B backlog. Q2 report due mid-December must show cloud growth of 65-71%.

Microsoft is tightening oversight of data center deals with neocloud providers Nebius, IREN, and Nscale, stepping back from risky projects and debating new deals. Shares of Nebius and IREN fell 14% and 17% respectively, while CoreWeave dropped 10%. IREN delayed deliveries and revenue targets due to Microsoft's network design changes. Microsoft is focusing on expanding its own data centers and may not renew or expand some contracts. Texas' political uncertainty adds to the challenges.