Hua Er Jie Jian Wen·2025-10-15 10:05Core Insights - The global demand for AI infrastructure is expanding from the US to Europe, highlighted by a significant partnership between UK startup Nscale and Microsoft, potentially worth up to $14 billion [1][3] - Nscale, supported by Nvidia, is set to deploy approximately 104,000 Nvidia GB300 chips in Texas and an additional 12,600 GPUs in Portugal, building on a previous $6.2 billion contract [1][3] - Nvidia plays a crucial role as both a chip supplier and investor in Nscale, reflecting its strategy to accelerate the AI ecosystem by investing in its clients [2][5] Nscale's Growth and Challenges - Nscale has rapidly raised $1.5 billion in funding, achieving a valuation of around $3 billion, despite being only a year old [4] - The company faces significant challenges in scaling its operations, particularly in deploying over 100,000 GPUs in Texas and 12,600 in Portugal, with the latter expected to be operational by early 2026 [3][4] - Nscale's CEO emphasizes that the primary risk is not demand but rather potential power shortages, with nearly all capacity sold out for the next 12 months [4] Nvidia's Investment Strategy - Nvidia's backing has significantly boosted Nscale's market credibility, leading to increased investor confidence [5] - Nvidia's CEO announced a £500 million investment in Nscale to expedite the deployment of up to 300,000 GPUs, projecting potential revenues of up to £50 billion over the next six years [5] - This investment strategy is not isolated, as Nvidia has also invested in competitors like CoreWeave and Nebius, aiming to enhance the global AI data center landscape [5] European Market Dynamics - Europe is emerging as a critical battleground for AI infrastructure, with Nscale's choice of Portugal for its AI facility driven by the country's renewable energy leadership and competitive energy prices [6] - Portugal aims for 71% of its energy consumption to come from renewable sources by 2024, increasing to 81% by Q1 2025, which aligns with Nscale's sustainability goals [6] - Nscale's expansion in Europe includes projects in Norway and the UK, indicating its growing influence in the global AI infrastructure sector [6]