• Anthropic is negotiating a second computing deal with Nscale potentially worth $45 billion, adding to an existing $44.6 billion agreement.
  • The proposed contract would bring the combined headline value to roughly $90 billion, underscoring the AI developer's insatiable demand for capacity.
  • The talks come as Nscale prepares for an IPO seeking a $30 billion valuation, though the company has not secured binding financing for the required GPU infrastructure.

Second Major Commitment

Anthropic is in negotiations with London-based AI infrastructure provider Nscale for a second computing deal that could be worth approximately $45 billion, according to people familiar with the matter. The proposed agreement would add to an existing contract valued at up to $44.6 billion, bringing the two companies' combined headline contract value to roughly $90 billion if completed on the reported terms.

The new talks concern another building at Nscale's Monarch campus in West Virginia, with approximately 460 megawatts of computing capacity powered by Nvidia (NVDA)'s Vera Rubin chips. The deal remains in discussion and terms could change, the sources cautioned. An agreement could emerge within days, though no final decision had been made.

Anthropic also reportedly has a right of first refusal on an expected third Monarch building, signaling the AI developer's expansive infrastructure ambitions. The negotiations were first reported by Reuters (TRI) and Bloomberg.

Nscale's IPO Ambitions

The potential deal could strengthen Nscale's planned initial public offering, for which the company is seeking approximately a $30 billion valuation. Bloomberg reported that another large customer agreement would bolster the IPO narrative, though contracted future business should not be confused with revenue already earned.

Nscale's September IPO disclosures showed $103.4 billion in active and contracted total contract value as of August 31, versus just $2.6 billion in active contract value—a substantial delivery pipeline rather than realized sales. The company reported first-half 2026 revenue of approximately $141 million against a roughly $1 billion net loss.

A key risk: the IPO disclosures reportedly said Nscale had not yet secured binding financing commitments for the GPU equipment and infrastructure needed to fulfill the existing Anthropic agreements as of the prospectus date. That is a concrete financing concern, not evidence that the project will necessarily fail.

Anthropic's Rapid Growth

The deal talks come as Anthropic continues its torrid expansion. Reuters reported third-quarter 2026 revenue of $16.8 billion, up 45% from $11.6 billion in the second quarter. Management told prospective investors it achieved an adjusted profit in the third quarter, though that does not establish profitability under standard accounting measures.

In 2025, Anthropic generated nearly $4.6 billion in revenue with operating losses exceeding $8 billion, excluding specified liability writedowns. The company, founded by former OpenAI executives, counts Google (GOOGL) and Amazon (AMZN) as investors, computing suppliers, distribution partners and competitors.

Anthropic is preparing for its own IPO, with Reuters reporting a target valuation above $2 trillion and a likely listing after the November U.S. midterm elections. Those remain plans, not completed outcomes.

Infrastructure and Financing Tensions

The central financial tension is the gap between Nscale's current operating scale and its enormous delivery commitments. The Monarch campus has a potential power runway exceeding 8 gigawatts, though that capacity is not operational today. Nscale says the site will use on-site natural-gas generation, with a Caterpillar (CAT) collaboration targeting two gigawatts of generation by the first half of 2028. Its original deployment plan calls for computing capacity to enter service in tranches beginning in late 2027.

The potential economic beneficiaries include construction contractors, equipment suppliers, power-generation providers and the surrounding region. The offsetting risk is that investment and financing must precede much of the customer revenue, leaving returns dependent on timely completion and sustained AI demand.

Anthropic's rapid revenue expansion helps explain its appetite for more capacity, but its obligations are also growing: Reuters reported the company had committed at least $518 billion over a decade to cloud services, computing and infrastructure. Investors must therefore assess both customer demand and the cost of serving it.

Political and Regulatory Hurdles

The most immediate policy issues are state development rules, power generation and environmental oversight. West Virginia Public Broadcasting reported that Monarch is among projects approved under a state program exempting developments from some local permitting and zoning requirements. This accelerates development but has generated objections about public participation.

Nscale says the campus will initially operate independently of the local grid, protecting existing utility customers from its power costs—a stated design rationale, not an independently established guarantee. The project's proposed gas-fired generation introduces air-permitting and emissions questions. A published permit-application summary describes an initial 2,160-megawatt plant, making environmental approval and compliance material execution issues.

A separate controversy concerns a rare mature American chestnut orchard on former state nursery land at the Monarch site. An October 15 investigation by West Virginia Public Broadcasting reported that the development threatens the orchard, with residents and researchers criticizing limited consultation and questioning whether relocating the trees would preserve them. Nscale says it does not intend to cut down the trees and plans to fund relocation during winter 2027. Tree specialists interviewed by the broadcaster warned that moving mature, blight-affected trees could kill them.

What to Watch

The most important next disclosures will be the contract's final value and duration, delivery dates, financing arrangements and conditions governing customer payments. Existing Nscale agreements already contain delivery and service-availability requirements.

A relevant parallel development is Microsoft (MSFT)'s reported withdrawal from Nscale's Loughton project in the U.K. because of an interconnection delay. That is a separate site—not evidence of cancellation at Monarch—but it demonstrates why investors distinguish signed contracts from infrastructure that is energized and earning revenue.

Reuters frames Anthropic's coming IPO as an early test of investor appetite for AI developers pursuing massive scale. The reported third-quarter adjusted profit is encouraging, but it does not resolve whether rapid growth can sustainably cover the industry's extraordinary infrastructure commitments. No firm forecast for the second Nscale contract's profitability or completion is established in the cited reporting.

Anthropic and Nscale did not immediately respond to requests for comment.