Nscale reportedly in talks to sell $45 billion worth of computing power to Anthropic, potentially boosting IPO prospects

According to Golden Ten Data APP, sources have revealed that AI cloud computing company Nscale Ltd. is in talks to sell computing power to Anthropic PBC, with the deal potentially valued at around $45 billion. The sources said that this data center developer, backed by Nvidia (NVDA.US), is seeking to reach a second major agreement with Claude developer Anthropic, involving a second facility at the Monarch data center campus in West Virginia. According to Nscale's IPO prospectus, Anthropic has already signed an infrastructure agreement with Nscale valued at up to approximately $44.6 billion.

Some sources stated that the second Monarch building will provide 460 megawatts of computing capacity, using Nvidia's advanced Vera Rubin AI chips. They also noted that Anthropic has the right of first refusal for the expected third Monarch building, allowing it to lease first under the same conditions.

The sources said the deal could be finalized as soon as in the coming days. Negotiations are ongoing, and the details of the plan may change, with no final decision yet made. Representatives of Anthropic and Nscale both declined to comment.

IPO Valuation Expectations Change

If this deal is completed, it will be yet another multi-billion dollar computing power agreement and is expected to boost Nscale’s IPO prospects. The company is seeking a valuation of around $30 billion in its listing. However, sources recently said that a group of investors has urged the company to consider a valuation range of $16 billion to $19 billion, believing such a valuation is more likely to attract buyers. One key factor is the collapse of the IPO plans of Australian AI data center company Firmus.

Anthropic is one of Nscale’s largest clients and has also become an important customer among data center providers. Its signed agreements include: a $50 billion deal with Fluidstack Ltd., a $10 billion deal with infrastructure startup Volta Infrastructure Holdings Ltd., and a $45 billion deal with Elon Musk’s SpaceX.

According to the IPO filing, Nscale’s Monarch campus in West Virginia, once fully completed, could be scaled up to over 8 gigawatts of total power.

Part of the Monarch campus was initially expected to be leased by Microsoft. In March, Microsoft announced that it had signed a letter of intent for the planned data center. However, according to reports, Microsoft withdrew from the West Virginia site in the summer, making Anthropic the tenant.

Anthropic was valued at $965 billion in May and is expected to launch a major IPO in the coming months, continuing to seek more computing power to maintain growth.

Investors are growing increasingly cautious about the large amounts of debt being taken on to finance the AI data center boom. From chipmaker stocks to cloud computing company debt, sentiment towards related assets has cooled. Several of Nscale’s peers have seen their share prices hit hard recently. CoreWeave (CRWV.US) saw a quarter of its market value wiped out last week, with its credit risk indicator rising to a record high; Nebius (NBIS.US) shares fell 32% in the past two weeks.

Nscale publicly filed for a U.S. listing on September 18. Although the required 15-day waiting period has passed, the company has not yet begun a formal roadshow. According to sources, the company is currently addressing comments from the U.S. Securities and Exchange Commission (SEC) on its filing and plans to launch the roadshow once these issues are resolved.

This London-based company just completed a $3.36 billion pre-IPO fundraising round last month, led by Dan Loeb’s Third Point. Other participating institutions included Nvidia, Apollo Global Management (APO.US), Citadel, Hudson Bay Capital, and the Abu Dhabi Investment Authority.