Nscale is negotiating to sell computing power to Anthropic in an agreement that could be valued at around $45 billion, according to Bloomberg.
The Nvidia $NVDA-backed developer of data centers is pursuing the deal to cover another building on Monarch, its West Virginia campus, according to Bloomberg. The second building would supply 460 megawatts of capacity built around Nvidia's Vera Rubin AI chips, and Anthropic has first-refusal rights on a third planned building at the campus, according to Bloomberg.
A deal may be signed within days, according to Bloomberg. Details could shift, and nothing has been settled yet, according to Bloomberg. Representatives for Anthropic and Nscale declined to comment, according to Bloomberg.
Nscale would still have to line up funding to pay for the AI chips tied to the new deal, according to Bloomberg. Nscale said in its IPO filing that it has not secured financing for its first Anthropic contract.
That first contract is a roughly $45 billion cloud computing deal signed in August, under which Anthropic will lease about 460 megawatts from an Nscale facility in West Virginia. The agreement spans six years, and the facility is expected to come online at the end of 2027.
Nscale's IPO filing put the Anthropic agreement at $44.6 billion. Nscale must reach defined milestones and sustain reliable computing performance under the contract, and failure to do so gives Anthropic grounds to walk away. Microsoft $MSFT and Anthropic together account for 85% of Nscale's $103 billion in total contract value.
Microsoft had originally been slated to lease a portion of the Monarch campus, according to Bloomberg. Microsoft pulled out of the West Virginia site over the summer, which opened the way for Anthropic to take over as tenant, according to Bloomberg.
Nscale is aiming for a $30 billion valuation in its IPO, according to Bloomberg. A group of investors has pushed Nscale to cut that goal to a range of $16 billion to $19 billion, according to Bloomberg. Nscale submitted its public U.S. listing filing in September and has held off on launching a formal marketing push as it addresses feedback from the Securities and Exchange Commission, according to Bloomberg.
Anthropic has signed other data center deals, including $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, according to Bloomberg.
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