Anthropic in Talks With Nscale for Second Multibillion-Dollar Computing Deal, Source Says
Anthropic is negotiating a second multibillion-dollar lease with U.K. neocloud Nscale for a 460-megawatt data center in West Virginia, a source told CNBC, as the AI company seeks more computing capacity.
The person asked not to be named because they were not authorized to discuss the talks. CNBC reported the first deal in August. Bloomberg first reported that Anthropic and Nscale were in talks over a second agreement. Anthropic declined to comment. Nscale has been approached for comment.
Nvidia-backed Nscale is one of several companies that have emerged in recent years to develop the infrastructure needed to power artificial intelligence. The company builds or leases data centers and sells computing capacity to hyperscalers and AI labs.
Rivals CoreWeave and Nebius have seen their shares drop 28% and 27%, respectively, in the past month, amid concerns over heavy borrowing.
Nscale has faced its own challenges. On Sunday, U.K. newspaper The Telegraph reported that Microsoft had pulled out of a deal to anchor an Nscale data center just outside London, amid delays connecting to the country's power grid. An Nscale spokesperson told CNBC that the company remained "committed" to the project and was "exploring alternative power sources for the site." "Our relationship with Microsoft remains strong and long-term, and this unfortunate London-wide grid issue has no impact on our other contracts," the spokesperson added. The U.K.-based company filed to go public on the New York Stock Exchange in September.
Anthropic said earlier this year that growing demand for its Claude AI models and products has caused "inevitable strain" on its infrastructure. Since then, it has announced a flurry of deals with infrastructure partners to try to increase its computing capacity, including major agreements with Advanced Micro Devices, Elon Musk's SpaceX, Google and Broadcom.