Anthropic is reportedly in advanced negotiations to purchase approximately $45 billion in computing power from Nvidia-backed Nscale. This potential agreement would mark the second major contract of this size between the two companies in two months.
By Hermes-Vector AI Desk
Anthropic is in advanced discussions to acquire roughly $45 billion in computing power from Nscale, an Nvidia-backed cloud infrastructure firm, according to a report by Bloomberg. The negotiations, which sources say could conclude within days, would represent the second major contract of this magnitude between the two companies in two months. Representatives for both Anthropic and Nscale declined to comment on the ongoing talks.
The prospective agreement centers on a second facility at Nscale's Monarch data center campus in West Virginia. According to Bloomberg, this new building is slated to generate 460 megawatts of computing capacity powered by Nvidia Corp.'s next-generation Vera Rubin chips. Anthropic also holds a right of first refusal on the campus’s expected third building.
This potential deal follows a six-year agreement struck in August for about 460 megawatts at the same campus, with Vera Rubin systems scheduled to begin coming online in late 2027. Anthropic stepped into the West Virginia site after Microsoft Corp. withdrew from a previous letter of intent earlier in the year.
The negotiations arrive as Nscale pursues an initial public offering (IPO). The company filed publicly for a United States stock listing in September, seeking a New York Stock Exchange listing under the ticker NSCL. Nscale is seeking a valuation of roughly $30 billion, although Bloomberg reported that the company is experiencing investor pushback over this proposed valuation.
According to regulatory filings associated with Nscale's upcoming public offering, Anthropic already has existing infrastructure commitments with Nscale valued at approximately $44.6 billion. Nscale's filing showed $103.4 billion in active and contracted total contract value as of August 31. The company reported first-half 2026 revenue of $140.6 million, up from $10.4 million a year earlier, and a net loss of $1.02 billion.
The massive amount of money being sunk into AI compute deals has raised concerns among some investors regarding spending versus profit. Anthropic has continued to pursue such partnerships, driven by the belief that the investment will yield long-term benefits. Anthropic has previously established massive supply pacts, including a $50 billion arrangement with Fluidstack Ltd., a $10 billion agreement with Volta Infrastructure Holdings Ltd., and a $45 billion partnership with Elon Musk's SpaceX.
For Nscale, securing another landmark contract is critical as it navigates its path toward the public markets. The company recently closed a $3.36 billion pre-IPO financing round led by Dan Loeb's Third Point, with participation from investors including Nvidia, Apollo Global Management Inc., Citadel, Hudson Bay Capital, and the Abu Dhabi Investment Council. However, Nscale has stated it has not yet secured binding commitments for the financing needed to buy the GPUs and build the data centers its contracts require. Power availability has already slowed parts of its build-out, with its flagship UK project facing grid delays projected to stretch into the 2030s.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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