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Anthropic in Talks for Second $45 Billion Nscale Cloud Deal as AI's Infrastructure Bills Come Under Investor Scrutiny

October 20, 2026 — Anthropic is in talks to spend another $45 billion renting AI computing power from Nvidia-backed cloud firm Nscale, this time for a second facility at Nscale's Monarch data center campus in West Virginia, according to reporting by Bloomberg News and Reuters on October 19, 2026. The potential deal — the AI lab's latest in a string of giant compute contracts — lands as investors sharpen their scrutiny of the debt-fueled race to build the data centers powering the artificial intelligence boom.

Illustration of a vast AI data center campus at dusk in West Virginia

Illustration: A vast AI data center campus glowing at dusk, symbolizing the race to secure computing power for artificial intelligence.

What Happened

Bloomberg News first reported on Monday, October 19, 2026, that Nscale is in talks to sell AI computing power to Anthropic in a deal that could be worth about $45 billion, citing people familiar with the negotiations. A person familiar with the matter separately told Reuters on Monday that the data center developer is seeking another major deal with the Claude maker for a second facility at its Monarch data center campus in West Virginia. Nscale did not immediately respond to Reuters' requests for comment, and Reuters said it could not independently verify the report.

This would be the second blockbuster agreement between the two companies in as many months. In August, Anthropic struck a deal to spend $45 billion to rent AI cloud computing power from Nscale's West Virginia campus. The new facility under discussion would deliver 460 megawatts of computing power using Nvidia's advanced Vera Rubin AI chips, according to the source who spoke to Reuters. Anthropic also has the right of first refusal on the campus's expected third building, the person said, adding that discussions were ongoing and that details of the plan could change.

The news comes at a delicate moment for Nscale. Microsoft recently pulled out of a deal to anchor a flagship data center for the company after power connection delays pushed its expected supply date into the 2030s. Bloomberg also reported that a cohort of investors has urged Anthropic to lower its IPO valuation target after a series of market setbacks for AI companies. Some investors discussed a valuation of around $1.5 trillion at an investor meeting, below earlier expectations of roughly $2 trillion, Reuters reported last week.

Background

Nscale is a fast-growing AI cloud computing firm and data center developer backed by Nvidia. According to its prospectus, the company has grown its total contracted value from $100 million to more than $103 billion in just two and a half years, competing with rivals such as Nebius, Crusoe and Lambda. Its Monarch Compute Campus in West Virginia sits on a 2,250-acre site acquired in March 2026, with the potential for up to 8 gigawatts of capacity; the first phase, planned at 2 gigawatts, is expected to come online in the first half of 2028, with power supplied by Caterpillar's fast-response natural gas generator sets, according to industry publication Data Center Dynamics.

Anthropic, meanwhile, has been on a relentless hunt for computing capacity to train and run its Claude AI models. The company has reportedly signed more than a dozen letters of intent for data center leases with multiple US developers, and has committed to renting more than 10 gigawatts of servers from cloud providers — including a $200 billion agreement with Google. It has also signed large cloud capacity deals with Akamai, Amazon Web Services (including a massive cluster of AWS's custom Trainium hardware), CoreWeave, and a $50 billion partnership with AI cloud firm Fluidstack. Data Center Dynamics reports Anthropic is also seeking to work with Google under a financial guarantee for its lease payments, similar to the arrangement Google has with Fluidstack.

The compute race is colliding with rising anxiety about how it is all being financed. Last week, shares in Nscale rival CoreWeave slumped amid concerns over its $50 billion debt load, helping fuel a global selloff in AI stocks — the SOX chip index lost more than 10 percent in a week and CoreWeave dropped roughly 25 percent. In July, S&P downgraded Oracle to BBB-, the lowest rung of investment grade, citing concerns about its AI spending and what it called "an uncertain path to profitability."

Illustration of an AI data center connected to high-voltage power lines

Illustration: An AI data center wired into the high-voltage grid, symbolizing the enormous energy appetite of the AI buildout.

Why It Matters

The potential Nscale deal is a vivid illustration of the staggering scale — and cost — of the AI infrastructure boom. Training and running frontier AI models requires enormous clusters of specialized chips, and the race to secure that capacity has spawned a web of enormous, often debt-financed deals between AI labs, cloud providers and data center developers. S&P Global's top analyst for digital infrastructure, Mark Habib, said at a London roundtable on October 19 that it is "safe to assume" the world's biggest tech firms carry more AI-linked liabilities than currently known, because much of the financing is not publicly reported.

"If it's not reported, then it's not part of the disclosure by the hyperscalers," Habib said, adding that S&P is trying to take a "holistic" view of the risks. S&P expects the top six US hyperscalers — Amazon, Microsoft, Alphabet, Oracle, Meta and SpaceX — to spend more than $7 trillion on data centers and other AI-related capital expenditure between 2025 and 2030, and to have negative free cash flow until at least next year. Habib said the biggest risk to their credit ratings remains whether expected profits fail to materialize from the AI bets.

The timing adds a competitive edge. OpenAI is racing to secure investor commitments before Anthropic's expected public market debut in mid-November, in an unusually fast fundraising that could value the ChatGPT maker at over $1.4 trillion, according to two people familiar with the matter cited by Reuters on October 19. SoftBank Group, Abu Dhabi-based MGX and other existing backers are in talks to join the roughly $30 billion round. Investors familiar with the matter say OpenAI also needs capital to fund substantial infrastructure commitments and strengthen its balance sheet in case a deterioration in IPO markets further delays its planned 2027 listing. Bloomberg reported separately that former Google CEO Eric Schmidt owns about 1 percent of Anthropic — positioning him for one of the largest individual windfalls when the startup goes public.

What Happens Next

Several developments in the coming days and weeks will shape how this story unfolds:

  • The Nscale-Anthropic talks: Any signed agreement would lock in 460 megawatts of Nvidia Vera Rubin-powered capacity, expected to come online late next year, and could confirm Nscale's third Monarch building with Anthropic holding first refusal.
  • Anthropic's IPO: The startup's expected mid-November public debut is now widely seen as the defining event for AI valuations — and Bloomberg reports some investors are pushing for a lower valuation target after recent market turbulence.
  • OpenAI's fundraising sprint: OpenAI's roughly $30 billion round is expected to move faster than typical for its size, as the company tries to get ahead of its rival in tapping the same investor base.
  • Earnings season: Meta is expected to report this week, with Tesla due on Wednesday and SpaceX on Tuesday — close attention will be paid to how much each plans to keep spending on AI infrastructure. Investors are watching the scale of Meta's investment-spending growth in particular.
  • Credit watch: With S&P warning of hidden AI-linked debt, bond markets will scrutinize how neocloud firms such as CoreWeave refinance their borrowing — their debt has sunk to what Reuters described as "increasingly stressed levels."
Illustration of glowing AI processor chips in server racks

Illustration: Rows of glowing AI chips in server racks, symbolizing the computing hardware at the heart of the $45 billion deal.

Whether the Nscale-Anthropic talks produce a second $45 billion contract or not, the episode underlines a structural shift: the AI industry's center of gravity is moving from model breakthroughs to the concrete, steel and gigawatts needed to run them — and investors are starting to ask who pays when the bills come due.

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FAQ

What is the reported Nscale-Anthropic deal worth?

About $45 billion, according to Bloomberg News reporting on October 19, 2026, confirmed by a source who spoke to Reuters. It would be a second deal after an earlier $45 billion agreement in August, covering a new 460-megawatt facility at Nscale's Monarch campus in West Virginia.

What is Nscale?

Nscale is an Nvidia-backed AI cloud computing firm and data center developer that has grown from $100 million to more than $103 billion in contracted value in two and a half years. Its Monarch Compute Campus in West Virginia could eventually host up to 8 gigawatts of data center capacity.

Why are investors worried about AI infrastructure debt?

AI data centers require enormous upfront spending, much of it debt-financed. S&P Global warned on October 19 that big tech firms likely have more AI-linked liabilities than publicly known, and CoreWeave's shares slumped last week on concerns about its $50 billion debt load.

What are Nvidia Vera Rubin chips?

Vera Rubin is Nvidia's latest generation of AI accelerator chips, designed to power the training and operation of large AI models. The new Monarch facility would use these chips to deliver 460 megawatts of computing power, expected online late next year.

How does this relate to Anthropic's IPO?

Anthropic is expected to debut on public markets in mid-November. Bloomberg reported that some investors have urged the company to lower its IPO valuation target after recent AI-stock setbacks, while rival OpenAI is rushing a $30 billion fundraising round to get ahead of it.

Sources

  • Reuters, "Nscale, Anthropic in talks for $45 billion cloud computing deal, Bloomberg News reports," October 19, 2026
  • Bloomberg News, via Reuters, Nscale-Anthropic $45 billion cloud deal reporting, October 19, 2026
  • Reuters, "Top hyperscalers likely have more AI-linked debt than now known, S&P Global warns," October 19, 2026
  • Reuters, "Former Google CEO Schmidt owns 1% stake in Anthropic, Bloomberg reports," October 19, 2026
  • Reuters, "OpenAI seeks to accelerate fundraising ahead of Anthropic IPO, sources say," October 19, 2026
  • Data Center Dynamics, "Anthropic signs $45bn compute capacity agreement with Nscale — report," October 2026
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