Nscale is in talks with Anthropic for a second $45 billion AI computing deal

Nscale is in talks to provide computing power to Anthropic in a deal that could be worth about $45 billion, according to Bloomberg.

The company, which builds data centers and has backing from Nvidia $NVDA, is working on the deal to supply another building at its Monarch campus in West Virginia, according to Bloomberg. The second building would provide 460 megawatts of computing power using Nvidia's Vera Rubin AI chips. Anthropic also has the first chance to lease a third planned building at the campus, according to Bloomberg.

Bloomberg reports that the companies could sign the deal within days. However, the details could change, and nothing has been finalized. Representatives for Anthropic and Nscale declined to comment, according to Bloomberg.

Nscale would still need to find the money to pay for the AI chips required for the new deal, according to Bloomberg. In its IPO filing, Nscale said it had not secured funding for its first contract with Anthropic.

The first contract is a cloud computing deal worth about $45 billion, signed in August. Under the agreement, Anthropic will rent about 460 megawatts of computing power from an Nscale facility in West Virginia. The contract lasts six years, and the facility is expected to start operating at the end of 2027.

Nscale's IPO filing valued the Anthropic agreement at $44.6 billion. Under the contract, Nscale must meet specific goals and keep its computing services reliable. If it fails to do so, Anthropic has grounds to end the agreement. Microsoft $MSFT and Anthropic together make up 85% of Nscale's total contract value of $103 billion.

Microsoft was originally expected to rent part of the Monarch campus, according to Bloomberg. But Microsoft withdrew from the West Virginia site over the summer, allowing Anthropic to take its place as the tenant, Bloomberg reported.

Nscale hopes to be valued at $30 billion when it goes public, according to Bloomberg. However, a group of investors has urged the company to lower that target to between $16 billion and $19 billion. Nscale filed paperwork in September to list its shares publicly in the United States. It has delayed the start of its formal marketing campaign while responding to feedback from the Securities and Exchange Commission, according to Bloomberg.

Anthropic has signed other deals for data center computing power, including agreements worth $50 billion with Fluidstack, $10 billion with Volta Infrastructure Holdings, and $45 billion with SpaceX, according to Bloomberg. Anthropic is expected to hold its own IPO in the coming months, Bloomberg reported.