Anthropic and Nscale negotiate a potential $45 billion AI cloud expansion
Anthropic is in discussions with Nvidia-backed Nscale to secure additional AI computing capacity in a deal valued around $45 billion.
Nscale, backed by Nvidia, is negotiating with Anthropic to extend AI cloud services in a transaction that could total about $45 billion. The proposed expansion would add a second Monarch data-center building in West Virginia, delivering 460 megawatts of compute power powered by Nvidia’s Vera Rubin AI chips. Anthropic’s earlier agreement already secures the same amount of spending for the first campus, and the company retains the option to take on a third facility.
Investors have recently urged Anthropic to reduce its IPO valuation target amid broader market pressures on AI firms. Meanwhile, competitor CoreWeave’s shares fell due to worries over its $50 billion debt load, contributing to a wider AI-stock downturn. Microsoft previously withdrew from anchoring a flagship Nscale data centre after power-supply delays pushed delivery into the 2030s.
Why it matters
The deal could shape the scale and cost of AI computing resources for a leading AI model developer.
How this story developed
- Oct 15 CoreWeave stock and bonds tumble as AI borrowing concerns intensify
- Oct 18 Microsoft has ended its planned partnership with British neocloud Nscale for a data centre in Loughton, Essex, citing ongoing power supply issues.
- Oct 18 CoreWeave’s bond yields rose above 16 % and default‑insurance costs jumped to about 1,000 basis points.
- Oct 19 Microsoft announced it will not honor the agreement as anchor tenant.
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