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MicrosoftSecondary report

Microsoft to cut its list of neocloud partners, CNBC reports

Microsoft is evaluating which neoclouds to stop using and wants to prioritize its own data centers, sources told CNBC, and two said it chose not to renew a deal with Oracle. Microsoft says it regularly reviews these investments against demand. IREN said on Thursday that over $4 billion in annual recurring revenue is delayed to at least January after a Microsoft request for a network upgrade. CoreWeave, Nebius and IREN shares are down by roughly half in a month, even after rallying on Friday.

Why it matters: Neoclouds carry heavy debt and depend on large customers, so one buyer's change of plans can move the whole group.

IREN revenue delayed
Over $4 billion a year, to January or February
IREN AI cloud revenue, latest quarter
$200 million
Sources: cnbc.comcnbc.com

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