By Kalbir Talwar
Publication Date: 2026-11-05 22:56:00
How Microsoft built the neocloud wave
To bridge a compute shortfall, Microsoft paid up for capacity from upstarts even though it runs one of the largest data center fleets. Those checks helped partners like CoreWeave Inc. and Nscale scale fast.
The bet had side effects. After CoreWeave brought over a small group of important Microsoft executives and, last year, reached a direct agreement with close partner OpenAI, many inside Microsoft were irritated, say employees who witnessed it. According to a CoreWeave spokesperson, Microsoft counted among its earliest partners and collaborators, and added, “and we continue to have a great relationship.”
Why the pivot now
Inside Microsoft, some leaders are rethinking third-party capacity. Internally, the company is prioritizing growth of its own data centers and, per people familiar with leadership talks, is cautious about signing additional neocloud…
