Nvidia-backed Nscale, Anthropic in talks for new $45 billion AI cloud deal, source says

The ongoing discussions between Nscale and Anthropic for a second $45 billion deal underscore the immense infrastructure requirements for advanced AI development. This proposed expansion would involve a second building at Nscale's Monarch campus, planned to deliver 460 megawatts of computing power utilizing Nvidia's Vera Rubin AI chips. Such dedicated, high-capacity facilities are crucial for companies like Anthropic, which require substantial resources to train and operate large AI models.

This potential tie-up emerges as investors are intensifying their scrutiny of the financial models supporting AI infrastructure growth. Reports indicate that a cohort of investors has urged Anthropic to lower its IPO valuation target due to market setbacks for AI companies. Additionally, Nscale rival CoreWeave's shares recently declined amid concerns over its $50 billion debt, contributing to a broader sell-off in AI stocks. This suggests a growing caution regarding the sustainability of debt-fueled expansion in the sector.

The pursuit of this new deal also highlights Nscale's strategic adjustments following Microsoft's reported withdrawal from anchoring a flagship data center due to power connection delays. Nscale's rapid growth, increasing its total contracted value from $100 million to over $103 billion in two-and-a-half years, demonstrates its ability to secure major customer commitments, though not without navigating significant challenges in infrastructure development and partner relationships.