Nvidia-backed Nscale, Anthropic in talks for $45bn AI cloud deal

By the Editorial Team · Wednesday, October 21, 2026

Nscale is negotiating with Anthropic on a potential $45 billion deal to build a second AI cloud computing facility at its Monarch data center campus using Nvidia’s advanced chips. This expansion could solidify Anthropic and Microsoft as Nscale’s main clients, despite recent setbacks and growing investor concerns about debt-fueled AI infrastructure growth.

Nscale, a data center developer backed by Nvidia, is engaged in negotiations with artificial intelligence company Anthropic over a potential deal valued at approximately $45 billion to provide AI cloud computing power, according to a source familiar with the matter. The discussions involve a second facility at Nscale’s Monarch data center campus in West Virginia.

In August, Anthropic agreed to a $45 billion contract to rent AI cloud infrastructure from Nscale’s Monarch campus. The prospective second building at Monarch is expected to deliver 460 megawatts of computing power utilizing Nvidia’s advanced Vera Rubin AI chips. The ongoing talks include terms that would give Anthropic the right of first refusal on a third building planned for the campus, although details remain subject to change.

Anthropic did not immediately respond to requests for comment. Earlier reports indicated that some investors have urged Anthropic to reconsider its initial public offering valuation following weakening market conditions for AI firms.

Investor caution has intensified around companies aggressively expanding AI infrastructure through debt financing. This concern is underscored by a recent decline in shares of Nscale rival CoreWeave, which faced investor apprehension over its $50 billion debt load, contributing to a broader downturn in AI-related stocks globally.

The potential transaction between Nscale and Anthropic follows recent setbacks for Nscale, including the withdrawal of Microsoft from an anchoring deal for a flagship data center. Microsoft’s exit was attributed to delays in power connection timelines, pushing project milestones into the 2030s. Despite this, Nscale has experienced rapid growth since its inception, increasing its total contracted value from $100 million to over $103 billion within two and a half years. The company competes with data center providers such as Nebius, Crusoe, and Lambda.

According to Nscale’s prospectus, Microsoft and Anthropic are expected to be the company’s principal customers moving forward, highlighting their significant roles in its expansion plans.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.