Anthropic Is in Talks for Another $45 Billion AI Deal. Nvidia Could Be a Big Winner.

Source Motley_fool

Key Points

  • Anthropic is reportedly discussing an expansion that would bring its total Nscale commitment to roughly $90 billion.

  • Microsoft and Anthropic account for roughly 85% of Nscale’s contract value, leaving it heavily dependent on two customers.

  • Anthropic’s rapid revenue growth comes with enormous spending commitments that prospective IPO investors need to weigh.

  • Motley Fool Issues Rare "Total Conviction" Buy Alert ›

Anthropic, the company behind Claude, is reportedly in talks with the British neocloud provider Nscale to expand an already massive compute deal, adding roughly $45 billion in contract value as both companies prepare to go public in the coming months.

Anthropic's Nscale deal could reach $90 billion

CNBC reported this morning that the frontier AI lab is in talks to rent computing capacity in a second building at Monarch, Nscale's data center campus in West Virginia. The deal would see Anthropic tap an additional 460 megawatts of compute capacity from Nvidia's latest Vera Rubin chips and would provide the company a right of first refusal on a planned third Monarch building.

Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »

AI letters inside a glowing blue circuit-board head on a purple digital network background

Image source: Getty Images.

While the deal has not closed, the proposed agreement would bring Anthropic's total Nscale commitment to roughly $90 billion.

Nscale's growth comes with major customer risks

Backed by Nvidia, Nscale is a rapidly growing "neocloud" -- essentially a smaller, leaner, AI-focused version of a traditional hyperscaler. It filed for a U.S. IPO in September.

Of course, that growth comes with a couple of pretty substantial asterisks. Just two companies account for roughly 85% of the company's contract value: Microsoft and Anthropic. That is an extreme level of customer concentration.

And Microsoft recently walked away from a planned Nscale data center in Loughton, England, after power connection delays pushed expected electricity availability into the 2030s. Microsoft reassured investors that the trouble was contained to the specific site and its other commitments remained intact, but it's a stark reminder of just how fragile Nscale's position is and how little leverage it has with the much bigger fish it relies on.

Anthropic's IPO puts its spending under scrutiny

The proposed expansion also comes as Anthropic prepares for what could be the largest initial public offering (IPO) in history. Potentially bigger than the recent record-setting SpaceX (NASDAQ:SPCX) IPO. Anthropic is reportedly targeting a November listing with a valuation between $1.5 trillion and $2 trillion, although a firm date hasn't been set.

According to Reuters, which reviewed Anthropic's draft IPO prospectus, revenue reached roughly $4.6 billion in 2025, about 12 times its 2024 level, but Q3 sales were recently reported to have reached $16.8 billion, up 45% from the previous quarter.

Of course, it takes a lot of capital to scale a business like this, and delivering that growth is expensive. Anthropic spent $7.33 billion on computing and infrastructure in 2025 and recorded an operating loss of more than $8 billion. Over the next decade, Anthropic is committed to spending over $500 billion on deals just like this one.

The company has said it reached positive adjusted profit in the second quarter. That's an encouraging sign, but until its full, audited financials are released, I would take that claim with a major grain of salt. What exactly "adjusted" means is crucial.

The Nscale expansion is worth paying attention to. It's a big potential contract that would provide the computing power Anthropic needs to grow. It also adds another enormous commitment to an already enormous list of commitments Anthropic has to fund somehow.

Should you buy stock in Space Exploration Technologies right now?

Before you buy stock in Space Exploration Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Space Exploration Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $376,696!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,333,920!*

Now, it’s worth noting Stock Advisor’s total average return is 925% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of October 20, 2026.

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Is Tesla’s Flying Car Safe? Musk Says It’s “Not Necessarily a Safety-Optimized CarElon Musk showed off a flying Tesla Roadster at SpaceX’s McGregor test site in Texas on Thursday. “Turns out the future does have flying cars,” the Tesla CEO posted on X afterward.Yet the flight syste
Author  Beincrypto
Oct 19, Mon
Elon Musk showed off a flying Tesla Roadster at SpaceX’s McGregor test site in Texas on Thursday. “Turns out the future does have flying cars,” the Tesla CEO posted on X afterward.Yet the flight syste
placeholder
Nasdaq Stocks Could Crash 30% If This Happens, Experts WarnWisdomTree’s Jeremy Siegel warns the Nasdaq Composite could fall as much as 30%. The risk grows if AI spending fails to deliver expected returns.The warning arrives on the 39th anniversary of Black Mo
Author  Beincrypto
23 hours ago
WisdomTree’s Jeremy Siegel warns the Nasdaq Composite could fall as much as 30%. The risk grows if AI spending fails to deliver expected returns.The warning arrives on the 39th anniversary of Black Mo
placeholder
Bitcoin Volatility Hits 2.5-Year Low as Traders Brace for 30% MoveBitcoin has barely moved despite another turbulent week for global markets. But an unusually tight trading pattern is raising fears of a sudden price swing, with $80,000 emerging as the level that cou
Author  Beincrypto
23 hours ago
Bitcoin has barely moved despite another turbulent week for global markets. But an unusually tight trading pattern is raising fears of a sudden price swing, with $80,000 emerging as the level that cou
placeholder
What History Says Happens After Chip Stocks Have a Week This BadBTIG has told investors to use any rebound in semiconductor stocks to cut their exposure. The firm expects a drawn-out decline in the sector that could stretch into 2027.The warning followed an 11.4%
Author  Beincrypto
23 hours ago
BTIG has told investors to use any rebound in semiconductor stocks to cut their exposure. The firm expects a drawn-out decline in the sector that could stretch into 2027.The warning followed an 11.4%
placeholder
Market News Today Australia: Nasdaq Jumps 1.1%, Gold Slips as AI Stocks ReboundNasdaq jumps 1.11% as AI stocks rebound, while gold and oil retreat. Explore Australia's market outlook for AUD/USD, ASX 200 and global indices.
Author  Mitrade Team
21 hours ago
Nasdaq jumps 1.11% as AI stocks rebound, while gold and oil retreat. Explore Australia's market outlook for AUD/USD, ASX 200 and global indices.
goTop
quote