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Nvidia-Backed Nscale Plans $45 Billion Compute Deal With Anthropic to Boost IPO Push

TradingKeyOct 20, 2026 1:45 AM

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Nvidia-backed Nscale is negotiating a potential $45 billion compute supply agreement with Anthropic to expand the Monarch data center campus in West Virginia. The proposed facility would deliver 460 megawatts of computing capacity utilizing Nvidia's next-generation Vera Rubin chips, with Anthropic securing the right of first refusal for a third facility. This prospective deal follows Microsoft's earlier withdrawal from the project and supports Anthropic's aggressive expansion of AI computing resources. For Nscale, which recently filed for a U.S. IPO targeting a $30 billion valuation, this partnership aims to reinforce investor confidence amid ongoing regulatory reviews.

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TradingKey - Nvidia (NVDA)-backed data center developer Nscale is in talks with Anthropic on a compute supply agreement worth about $45 billion, planning to expand the Monarch data center campus in West Virginia for Anthropic.

According to Bloomberg, citing people familiar with the matter, the two sides are discussing the construction of a second facility at the campus, and a deal could be finalized as early as the coming days. However, negotiations are still ongoing, and the specific terms have not been finalized. Representatives for both Anthropic and Nscale declined to comment.

The proposed second facility would provide approximately 460 megawatts of computing capacity and feature Nvidia's next-generation Vera Rubin AI chips, the people said. In addition, Anthropic has secured a right of first refusal for a planned third facility at the Monarch campus. This means that as demand for its Claude models continues to grow, Anthropic is locking in more computing resources in advance to support subsequent model training and AI service deployment.

According to Nscale's IPO regulatory filings, Anthropic previously signed an infrastructure agreement with the company, with related contracts valued at up to approximately $44.6 billion. A further major deal between the two parties would expand the scale of their existing collaboration. Once fully built out, the Monarch campus is expected to have a total power capacity of over 8 gigawatts, serving as vital infrastructure for large-scale AI computing tasks.

Leasing arrangements for the campus have previously shifted. Microsoft (MSFT) originally planned to lease part of the facility and signed a letter of intent in March this year, but reportedly pulled out of the project during the summer, after which Anthropic emerged as a prospective tenant. For Nscale, expanding cooperation with Anthropic not only secures a major customer but may also bolster investor confidence in its future revenue and business growth.

Anthropic has steadily increased its computing power procurement in recent years, entering into major partnerships with several data center and cloud service providers, including a deal of approximately $50 billion with Fluidstack, an agreement of about $10 billion with Volta Infrastructure Holdings, and a deal of around $45 billion with SpaceX. As demand for AI model training and inference continues to rise, securing stable, long-term computing resources has become essential for Anthropic to sustain its business growth.

The negotiations are also closely tied to Nscale's listing plans. The company filed for a U.S. IPO in September, targeting a valuation of approximately $30 billion. However, some investors have reportedly viewed this valuation as high and urged the company to adjust its expectations.

Nscale is currently still responding to comments from the U.S. Securities and Exchange Commission (SEC) on its listing filings and has not yet officially launched its roadshow. Last month, the company completed a $3.36 billion pre-IPO financing round led by Third Point, with participation from institutions including Nvidia and Apollo Global Management (APO).

This content was translated using AI and reviewed for clarity. It is for informational purposes only.

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Disclaimer: The content of this article solely represents the author's personal opinions and does not reflect the official stance of Tradingkey. It should not be considered as investment advice. The article is intended for reference purposes only, and readers should not base any investment decisions solely on its content. Tradingkey bears no responsibility for any trading outcomes resulting from reliance on this article. Furthermore, Tradingkey cannot guarantee the accuracy of the article's content. Before making any investment decisions, it is advisable to consult an independent financial advisor to fully understand the associated risks.

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