Microsoft agreed last year to lease computing capacity from AI infrastructure provider Nscale, backed by chip giant Nvidia. (EPA Images pic)LONDON: Microsoft confirmed Monday that it has pulled out of a UK AI data centre deal with British start-up Nscale, in a blow to the country's artificial intelligence (AI) ambitions.

The US technology giant agreed last year to lease computing capacity from AI infrastructure provider Nscale, which is backed by chip titan Nvidia, at a planned data centre in Loughton, northeast of London.

A Microsoft spokesman said "this decision relates to a single site", adding the company remains "committed to our partnership with Nscale".

The deal was announced alongside a flurry of multi-billion-dollar investments from US tech giants during president Donald Trump's state visit to the UK last year, which were touted as helping turn Britain into an AI superpower.