Microsoft just got its hands on 100,000 Nvidia GB300 chips - and all it took was investing $33 billion in these startups

Date:
Fri, 10 Oct 2025 20:50:00 +0000

Description:
Microsofts $33 billion investment in neocloud providers secures Nvidia GPUs, expands compute access, and raises new antitrust and energy concerns.

FULL STORY ======================================================================Microsof ts Nebius deal gives it 100,000 Nvidia chips without building more infrastructure Neocloud providers like CoreWeave and Lambda now power Microsofts expanding AI backbone Hundreds of thousands of Nvidia GPUs will soon fill Microsofts Wisconsin site

Microsofts growing reliance on third-party data center operators has entered
a new phase following a $19.4 billion deal with Nebius.

Nebius is one of several neocloud providers it has backed with a combined $33 billion in investment, and with this deal, Microsoft now has access to more than 100,000 of Nvidias newest GB300 chips.

Microsoft has generated billions by renting computing power to customers and aims to increase that figure to justify its expanding AI data center budget. Leasing compute to power AI ambitions

The deal is part of Microsofts broader effort to boost its AI capabilities
and expand the computing power behind its growing ecosystem of AI tools without having to commit all of its own infrastructure.

This shows how Microsoft is managing its massive AI demand by renting
capacity from others while reserving its own facilities for paying clients.

The companys internal data center infrastructure, already one of the largest in the world, has been positioned as a commercial service.

The Nebius deal gives Microsoft temporary access to Nvidias latest GB300
NVL72 server racks, each containing 72 of the high-end B300 GPUs.

Estimates place the cost of a fully equipped rack at around $3 million, suggesting Nebiuss share of the deal could exceed $4 billion in hardware alone.

For Microsoft, it is a shortcut to vast computing resources without waiting for its own upcoming facilities to come online.

Microsofts partnerships with neocloud providers like CoreWeave, Nscale, and Lambda show a shift toward spreading AI workloads across smaller, specialized compute networks.

These companies act as intermediaries, renting their GPU clusters to giants like OpenAI and now Microsoft.

Meanwhile, Microsoft is also investing heavily in its physical footprint.

The companys upcoming 315-acre data center complex in Mount Pleasant, Wisconsin, is expected to host hundreds of thousands of Nvidia GPUs.

It will also include enough fiber optic cable to wrap around the earth 4.5 times.

Designed with a self-sustaining power supply, it signals an attempt to reduce dependency on external providers in the long run.

The rapid buildout of GPU-driven data centers has already begun to strain local energy systems.

Wholesale power prices near major AI facilities have reportedly risen 267% over five years, prompting concern among U.S. residents and regulators.

Environmental impacts are also drawing attention, with new projects in Tennessee and Wyoming linked to rising emissions and energy use.

Nvidias own $100 billion investment in OpenAI has intensified questions about market concentration and antitrust risks.

Microsofts deep ties to both Nvidia and OpenAI now place it at the center of the same debate.

This shows how the pursuit of computational scale continues to blur the lines between partnership and dominance in the AI ecosystem.

Via Toms Hardware

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Link to news story: https://www.techradar.com/pro/microsoft-just-got-its-hands-on-100-000-nvidia-g b300-chips-and-all-it-took-was-investing-usd33-billion-in-these-startups


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