Nvidia-Backed Nscale Plans $45 Billion Compute Deal With Anthropic to Boost IPO Push

Source Tradingkey

TradingKey - Nvidia (NVDA)-backed data center developer Nscale is in talks with Anthropic on a compute supply agreement worth about $45 billion, planning to expand the Monarch data center campus in West Virginia for Anthropic.

According to Bloomberg, citing people familiar with the matter, the two sides are discussing the construction of a second facility at the campus, and a deal could be finalized as early as the coming days. However, negotiations are still ongoing, and the specific terms have not been finalized. Representatives for both Anthropic and Nscale declined to comment.

The proposed second facility would provide approximately 460 megawatts of computing capacity and feature Nvidia's next-generation Vera Rubin AI chips, the people said. In addition, Anthropic has secured a right of first refusal for a planned third facility at the Monarch campus. This means that as demand for its Claude models continues to grow, Anthropic is locking in more computing resources in advance to support subsequent model training and AI service deployment.

According to Nscale's IPO regulatory filings, Anthropic previously signed an infrastructure agreement with the company, with related contracts valued at up to approximately $44.6 billion. A further major deal between the two parties would expand the scale of their existing collaboration. Once fully built out, the Monarch campus is expected to have a total power capacity of over 8 gigawatts, serving as vital infrastructure for large-scale AI computing tasks.

Leasing arrangements for the campus have previously shifted. Microsoft (MSFT) originally planned to lease part of the facility and signed a letter of intent in March this year, but reportedly pulled out of the project during the summer, after which Anthropic emerged as a prospective tenant. For Nscale, expanding cooperation with Anthropic not only secures a major customer but may also bolster investor confidence in its future revenue and business growth.

Anthropic has steadily increased its computing power procurement in recent years, entering into major partnerships with several data center and cloud service providers, including a deal of approximately $50 billion with Fluidstack, an agreement of about $10 billion with Volta Infrastructure Holdings, and a deal of around $45 billion with SpaceX. As demand for AI model training and inference continues to rise, securing stable, long-term computing resources has become essential for Anthropic to sustain its business growth.

The negotiations are also closely tied to Nscale's listing plans. The company filed for a U.S. IPO in September, targeting a valuation of approximately $30 billion. However, some investors have reportedly viewed this valuation as high and urged the company to adjust its expectations.

Nscale is currently still responding to comments from the U.S. Securities and Exchange Commission (SEC) on its listing filings and has not yet officially launched its roadshow. Last month, the company completed a $3.36 billion pre-IPO financing round led by Third Point, with participation from institutions including Nvidia and Apollo Global Management (APO).

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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