This Nvidia-Backed Cloud Computing Firm Is Reportedly In Talks To Sign A $45B Compute Deal With Anthropic

• The companies are discussing a second facility at Nscale's Monarch campus in West Virginia. It would use Nvidia's newest Vera Rubin chips.
• The deal could be completed within days. It would be a major boost for Nscale as the company aims for a valuation of about $30 billion before its initial public offering (IPO), when a company first sells its shares to the public.
• Anthropic became involved in the West Virginia project after Microsoft pulled out of an earlier letter of intent this year.

Artificial intelligence company Anthropic PBC is in advanced talks to buy about $45 billion worth of computing power from Nscale, a cloud infrastructure company backed by Nvidia, Bloomberg reported.

According to people familiar with the talks who spoke to Bloomberg, the possible deal involves a second facility at Nscale's large Monarch data center campus in West Virginia. The new building is planned to provide 460 megawatts of computing capacity using Nvidia Corp.'s next-generation Vera Rubin chips.

The companies have not yet agreed on all the final terms, but a deal could be reached in the coming days. Representatives from both companies declined to comment on the talks.

Taking Over Microsoft's Planned Site

The West Virginia campus was originally planned to hold computing infrastructure for Microsoft Corp. (MSFT). Microsoft signed a preliminary letter of intent in March but later withdrew from the project, allowing Anthropic to pursue the site.

According to regulatory filings related to Nscale's planned public offering, Anthropic has already made commitments for about $44.6 billion in infrastructure with Nscale.

Anthropic, which created the Claude AI model, has quickly become one of the biggest users of data center capacity around the world. It has already made several major agreements to secure computing resources, including a $50 billion deal with Fluidstack Ltd., a $10 billion deal with Volta Infrastructure Holdings Ltd., and a $45 billion partnership with Elon Musk's SpaceX.

Nscale's Plans for the Stock Market

For Nscale, winning another major contract comes at an important time as the company prepares to enter the public stock market. Nscale filed public paperwork for a U.S. stock market listing in September.

The cloud computing company recently completed a $3.36 billion funding round ahead of its planned IPO. The round was led by Dan Loeb's Third Point and included major investors such as Nvidia, Apollo Global Management Inc., Citadel, Hudson Bay Capital, and the Abu Dhabi Investment Council.

Nscale is aiming for a valuation of $30 billion when it first sells shares to the public.

Anthropic is also considering a major public stock offering in the coming months. The company is rapidly expanding its computing infrastructure to meet growing demand from businesses and compete with rival AI company OpenAI.

Stocktwits users showed a 'bullish' view of Anthropic, with a 'high' volume of messages about the company.

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