Nscale and Anthropic Discuss Second $45B AI Compute Deal
The potential agreement for 460 megawatts of Nvidia Vera Rubin compute at Nscale's West Virginia campus comes as both companies prepare for initial public offerings.
In short
- Anthropic is in discussions with UK data center developer Nscale for a second compute contract valued at approximately $45 billion.
- The agreement would secure 460 megawatts of computing capacity powered by Nvidia Vera Rubin AI chips at Nscale's Monarch campus in West Virginia.
- Anthropic already holds up to $44.6 billion in commitments with Nscale and retains right of first refusal on a third Monarch facility.
- The negotiations surface amid investor skepticism over high capital spending and debt loads across the AI cloud sector ahead of planned IPOs.
Anthropic is in talks with Nvidia-backed infrastructure provider Nscale for a second major compute agreement valued at approximately $45 billion, according to reports by Bloomberg News and Reuters. If finalized, the transaction would double down on an earlier multi-billion-dollar partnership struck between the two companies just months ago.
The discussions focus on a second facility at Nscale's Monarch data center campus in West Virginia, according to reporting from Reuters. While sources cautioned that talks remain fluid and could still change, a formal agreement could be finalized in the coming days.
Expanding the Monarch Campus Footprint
The proposed agreement centers on supplying Anthropic, the developer of the Claude AI model family, with AI computing power. According to reporting synthesized by Investing.com, the planned second building at the Monarch site would supply 460 megawatts of power.
The facility is slated to house Nvidia's next-generation Vera Rubin AI processors. This follows an agreement first reported in August 2026, in which Anthropic contracted to rent 460 megawatts of compute capacity from Nscale's initial West Virginia building. Regulatory filings for Nscale's planned initial public offering show existing infrastructure agreements with Anthropic valued at up to $44.6 billion.
Beyond this second facility, Seeking Alpha cited Bloomberg's reporting from people familiar with the matter that Anthropic also holds a right of first refusal on an anticipated third building at the Monarch campus, providing the AI lab a clear path to expand its physical footprint in West Virginia.
IPO Ambitions Meet Market Scrutiny
The negotiations come as both Anthropic and Nscale prepare to test public market appetite through initial public offerings, with Anthropic expected to go public later in 2026. Nscale has pointed to rapid growth since its inception, expanding its total contracted backlog from $100 million to more than $103 billion in two and a half years as it competes against specialized cloud providers such as Nebius, Crusoe, and Lambda.
However, the massive figures come under sharpened investor scrutiny. Nscale is seeking an IPO valuation of roughly $30 billion, but has experienced investor pushback over its proposed valuation, according to Bloomberg reporting cited by TechCrunch.
Similarly, a cohort of investors recently urged Anthropic to reconsider its target IPO valuation amid broader market pullbacks for AI equities. The sector faced pressure after rival infrastructure operator CoreWeave saw its shares drop on concerns over its $50 billion debt burden, sparking wider questions about how quickly data center providers can turn backlog commitments into sustained cash flows.
Grid Delays and Operational Risks
Securing physical power and hardware remains a significant hurdle for rapid data center deployment. The reported talks with Anthropic arrive after Microsoft stepped back from a deal to anchor a flagship Nscale facility when power grid connection delays postponed estimated energy delivery into the 2030s, according to reporting via Devdiscourse.
Despite that setback, Nscale's prospectus positions Microsoft and Anthropic as central long-term customers. For Anthropic, committing tens of billions of dollars to multi-year compute contracts underscores its determination to secure sufficient hardware capacity to scale Claude, even as investors increasingly demand evidence of eventual profitability.
Questions people ask
What hardware will the new Nscale facility use?
According to sources cited by Bloomberg and Reuters, the second Monarch data center facility will be powered by Nvidia's advanced Vera Rubin AI processors.
Where is the data center campus located?
The facility is part of Nscale's Monarch data center campus located in West Virginia.
How much power capacity is Anthropic contracting for?
The proposed second facility is designed to deliver 460 megawatts of computing capacity, matching the 460 megawatts contracted under their earlier August agreement.
Have Anthropic and Nscale confirmed the agreement?
Neither company has confirmed the deal. Both Anthropic and Nscale declined to comment or did not immediately respond to media requests.
Sources
- Nscale and Anthropic are reportedly in talks for yet another $45B compute dealTechCrunch, Oct 19, 2026
- Nvidia-backed Nscale, Anthropic in talks for new $45 billion AI cloud deal, source says | InternationalDevdiscourse, Oct 19, 2026
- Nscale in talks for $45 billion Anthropic AI deal as IPO loomsinvesting.com, Oct 19, 2026
- Anthropic nearing second $45B deal with Nscale for compute power: reportseekingalpha.com, Oct 19, 2026
How this story was made: the newsroom picked it up from Techmeme and techcrunch.com, gathered the full text of the sources above, and drafted it with AI assistance. Every factual claim was then checked against those sources before publishing (22 claims checked). Illustrations marked as AI-generated are not photographs. Spotted an error? Tell us.
Published October 20, 2026 at 02:19 UTC
