Nscale Negotiates $45 Billion Deal with Anthropic for AI Cloud Computing Power

GuruFocus News

10/19/2026 15:30

On October 19, 2026, Nscale, a company that provides cloud computing for artificial intelligence (AI) and is backed by Nvidia, was reportedly in talks with Anthropic to sell it computing power in a deal worth about $45 billion. This would be Nscale's second major deal with Anthropic. It would involve the second facility at Nscale's Monarch data center campus in West Virginia. The two companies had previously agreed to an infrastructure deal worth up to $44.6 billion.

What's Behind the News?

The possible $45 billion deal between Nscale and Anthropic is an important development in the AI cloud computing industry. It shows that advances in AI are increasing the need for computing power. Nscale's Monarch data center campus in West Virginia is expected to play an important role in meeting this demand. The campus will use Nvidia's advanced Vera Rubin AI chips to provide about 460 megawatts of computing power. The deal could strengthen Nscale's position in the AI infrastructure market and improve its chances of a successful initial public offering (IPO), when a company first sells shares to the public. Nscale is aiming for a company valuation of about $30 billion.

Nscale operates in the technology sector, focusing on hardware and powerful computing systems. The company has a market capitalization of about $21.1 billion and is an important player in the AI cloud computing market. It competes with other major companies, including Super Micro Computer Inc. The ongoing talks with Anthropic could raise Nscale's profile and attract more investors, although some people have called for the company to lower its target valuation for its planned IPO.