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AI News from ET - Microsoft bets $33 Billion on neoclouds like Nebius to ease AI crunch

Vishwadeep Khatri
in AI News & Two Lenses

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Microsoft is investing heavily in "neocloud" companies like Nebius, with deals totaling over $33 billion, to secure crucial AI computing power. This strategy, including a $19.4 billion Nebius deal for Nvidia chips, addresses AI data center capacity shortages and frees Microsoft's own servers for lucrative customer services, driven by surging AI demand from internal teams and OpenAI.

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