Nscale inks massive AI infrastructure deal with Microsoft

Core Insights - Nscale has signed a significant deal with Microsoft to deliver approximately 200,000 Nvidia GB300 GPUs to multiple data centers in Europe and the U.S. [1] - The deployment includes 104,000 GPUs to a Texas data center leased by Ionic Digital over the next 12 to 18 months, with plans to expand capacity to 1.2 gigawatts [2] - Additional deployments include 12,600 GPUs to a data center in Sines, Portugal, starting in Q1 2026, and 23,000 GPUs to Loughton, England, in 2027, with 52,000 GPUs going to Microsoft's AI campus in Narvik, Norway [3] Company Positioning - Nscale's CEO, Josh Payne, emphasized the company's capability to deliver large-scale GPU deployments, highlighting its experience and established global pipeline [4] - Since its founding in 2024, Nscale has raised over $1.7 billion from strategic partners and investors, indicating strong financial backing [4] - The company is considering an IPO as early as the end of next year, reflecting its growth ambitions [4] Industry Trends - The demand for GPUs is increasing, as evidenced by OpenAI's recent purchases, including six gigawatts of chips from AMD and a deal with Nvidia for up to $100 billion in exchange for 10 gigawatts of chips [6] - Nscale's rapid expansion and commitment to advanced technology signal a shift in AI infrastructure delivery standards [5]