Nscale is reportedly negotiating a second $45 billion agreement to sell AI computing capacity to Anthropic, expanding on their deal struck just two months earlier. The new contract would cover a second building intended to power Nvidia’s next-generation AI chips.
- Second $45bn AI compute deal in negotiation two months after initial agreement
- New contract involves 460MW power building at Nscale’s Monarch campus
- Nscale seeks $30bn valuation while Anthropic prepares for IPO
What happened
Nscale and Anthropic are negotiating a second AI compute capacity deal worth approximately $45 billion, just two months after agreeing on an initial deal of the same size. This upcoming contract pertains to a second building at Nscale’s Monarch campus in Mason County, West Virginia, which will provide 460 megawatts of power specifically to support Nvidia’s upcoming Vera Rubin AI chips.
The original deal, struck in August, involved Anthropic committing $45 billion over six years to rent capacity in the campus's first building. Anthropic also holds a right of first refusal for a third planned building at Monarch. The companies have declined to comment, and Bloomberg reported the story citing sources familiar with the matter.
Why it matters
This deal underscores the massive capital investments required to build AI infrastructure at scale and highlights Anthropic’s aggressive capacity expansion to stay competitive in AI development. For Nscale, the agreements with Anthropic constitute a major portion of its business valuation, especially as it pursues a public listing in New York with a target valuation around $30 billion.
Nscale’s pre-IPO fundraising, including a $3.36 billion round in September led by the hedge fund Third Point, also signals strong investor support. The Monarch campus is positioned as a pivotal AI compute hub, despite Microsoft’s withdrawal from its planned tenancy due to grid connection delays pushing its start date into the 2030s.
What to watch next
Observers should monitor whether the second $45 billion deal is finalized in the coming days and whether its terms remain consistent with prior agreements. The progress at Monarch campus, especially the rollout of the second and potential third buildings, will be key to providing the needed infrastructure for Nvidia GPU deployments that power AI advancements.
Anthropic’s IPO preparations and investor sentiment will also be crucial to watch, as some backers reportedly urge a lower valuation target amid broader concerns over AI stock volatility and infrastructure firms’ debt levels. The sector’s health will be influenced by how companies like Nscale and Anthropic manage capital deployment and operational milestones.