Microsoft Secures $33 Billion in Neocloud Deals

Microsoft is leasing external GPU data centers to allocate its own facilities for other clients.

The company has invested $33 billion in neocloud datacenter providers, with a significant portion going to a $19.4 billion deal with Nebius. This agreement will provide Microsoft with approximately 100,000 Nvidia GPUs for internal use.

Sources indicate that Microsoft has access to over 100,000 of Nvidia's latest GB300 chips. This deal likely involves Nvidia's GB300 NVL72 server racks, each containing 72 B300 GPUs. If accurate, Microsoft has secured around 1,400 of these server racks.

The agreement allows Microsoft to use Nebius's data center facilities for internal teams developing large language models and consumer AI assistants. Microsoft's own data center infrastructure is primarily reserved for renting to new clients.

Microsoft has also allocated $13 billion to other neocloud providers like CoreWeave, Nscale, and Lambda. CoreWeave, a notable player, transitioned from cryptomining to serving AI data center hyperscalers and has secured significant deals with companies like OpenAI.

Recently, Microsoft announced plans for a 315-acre data center in Mount Pleasant, Wisconsin, featuring hundreds of thousands of Nvidia GPUs and a self-sustaining power supply. This development is beneficial for Wisconsin residents.