AI infrastructure provider Nscale is reportedly negotiating a new cloud computing agreement with Anthropic, the company behind the Claude AI chatbot, in a deal potentially valued at $45 billion. The proposed partnership would significantly expand Anthropic's access to advanced AI computing infrastructure as demand for artificial intelligence services continues to grow.
According to Reuters, citing a person familiar with the discussions, Nscale is seeking to develop a second facility at its Monarch data center campus in West Virginia. The expansion would strengthen the companies' existing relationship and support Anthropic's growing requirements for AI model training and deployment.
The potential agreement follows Anthropic's $45 billion cloud computing deal with Nscale in August 2026. Under the proposed expansion, the second Monarch facility would provide approximately 460 megawatts of computing capacity powered by Nvidia's next-generation Vera Rubin AI chips.
Anthropic also holds the right of first refusal for a planned third building at the Monarch campus, potentially allowing the AI developer to secure additional computing resources. However, negotiations remain ongoing, and the terms could change before any agreement is finalized.
The discussions highlight the accelerating demand for AI data centers, high-performance computing infrastructure, and advanced Nvidia processors. As AI companies develop increasingly sophisticated models, access to reliable computing capacity has become a critical competitive advantage.
Meanwhile, concerns surrounding debt-financed AI infrastructure investments are weighing on investor sentiment. Bloomberg reported that some investors have encouraged Anthropic to reduce its targeted initial public offering valuation following recent weakness across AI-related stocks.
CoreWeave, one of Nscale's competitors, recently experienced a sharp share price decline amid concerns about its approximately $50 billion debt burden. The selloff intensified broader market anxiety over the financial sustainability of massive AI infrastructure spending.
Nscale has also faced operational challenges. Microsoft reportedly withdrew from a proposed flagship data center agreement after electricity connection delays pushed the anticipated power availability into the 2030s.
Despite these setbacks, Nscale has expanded rapidly, increasing its total contracted value from approximately $100 million to more than $103 billion within two and a half years. The company now competes with major AI cloud infrastructure providers, including Nebius, Crusoe, and Lambda.
According to Nscale's prospectus, Microsoft and Anthropic are expected to remain key customers as the company expands its global AI computing operations.
