OpenAI has scrapped plans to lease computing power directly from a Norwegian data center, just days after confirming it had paused a similar initiative in the United Kingdom instead, Microsoft will assume the additional capacity previously allocated to OpenAI at the planned 230-megawatt “Stargate Norway” facility in Narvik.

An OpenAI spokesperson said that the company is now in talks to lease computing resources from Microsoft, according to CNBC.

In 2025, the AI company said it had the option to become an “initial offtaker” at the data center, which it grouped under its “Stargate” infrastructure initiative and which was being developed by U.K.-based AI cloud startup Nscale.

According to a source familiar with the matter, OpenAI had been in talks to lease roughly half of the facility’s capacity.

However, the source said the two sides ultimately failed to reach an offtake agreement, prompting Microsoft to step in and secure the capacity instead.

Bloomberg reported Tuesday that OpenAI did not finalize its offtake discussions with Nscale.

The company stated that it is in talks to lease capacity from Microsoft, noting that the arrangement is more financially practical as it falls within its existing contracted spending commitments.