OpenAI pulls back from Stargate Norway data center deal as Microsoft takes over

OpenAI has abandoned plans to rent compute capacity directly from a Norwegian data center, days after confirming it paused a similar project in the U.K.Microsoft is taking the extra compute previously earmarked for OpenAI at a planned 230MW "Stargate Norway" facility in Narvik. OpenAI is now in discussions to rent capacity from Microsoft instead, a spokesperson for the company told CNBC.The AI company said in 2025 it had the opportunity to be an "initial offtaker" at the data center, which OpenAI positioned under the umbrella of its "Stargate" infrastructure project and was being built by UK AI cloud startup Nscale.OpenAI was in discussions to rent around half of the facility's capacity, a source with firsthand knowledge of the matter told CNBC.The source said that Nscale and OpenAI ultimately did not agree on an offtake deal, with Microsoft stepping in to take up the capacity. Bloomberg reported on Tuesday that OpenAI didn't conclude its offtake talks at the data center with Nscale.An OpenAI spokesperson declined to comment on the amount of capacity it discussed renting as part of a potential offtake deal. The company told CNBC that it was in discussions to rent capacity from Microsoft, adding that this made more financial sense for the company, falling under existing contracted spending."We are moving ahead with our plans in Norway," an OpenAI spokesperson told CNBC. "Microsoft is an important partner in our network and we will work with them to access compute in Norway just as we already do in other parts of the world."They referred CNBC to its October announcement that it had contracted to purchase $250 billion of services from Azure, Microsoft's cloud-computing division.Nscale announced on Tuesday that Microsoft was expanding its agreement at the Narvik campus, adding more than 30,000 Nvidia Rubin GPUs in deployment. In March, Nscale said it would support Microsoft with its deployment of Nvidia's Vera Rubin platform across sites in the UK, Norway and beyond."Expanding our work with Nscale in Narvik helps ensure Microsoft customers have access to the advanced AI infrastructure they need as demand continues to grow across Europe," Jon Tinter, president of business development and ventures at Microsoft, said in Tuesday's statement.OpenAI has moved to temper expectations of its spending plans as a potential IPO looms this year.The company confirmed it had halted plans for its U.K. Stargate project last week, citing the cost of energy and the country's regulatory environment. In March, OpenAI announced it was shuttering its video generation service Sora. Funding has continued to pour in for the startup. March also saw OpenAI announce it had closed a record $122 billion funding round, at a post-money valuation of $852 billion.After 2025 saw it announce a flurry of AI infrastructure investments, OpenAI told investors in February that it was targeting roughly $600 billion in total compute spend by 2030, following comments from CEO Sam Altman in November that the company would hit $1.4 trillion in infrastructure commitments over the next eight years.Got a confidential news tip? We want to hear from you.Sign up for free newsletters and get more CNBC delivered to your inboxGet this delivered to your inbox, and more info about our products and services.© 2026 Versant Media, LLC.

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