Nscale's AI Bet Rests Largely on Microsoft and Anthropic

A giant pipeline, but it mostly runs through two names

Nscale builds data centers tailored for artificial intelligence, and it credits its 1,000-fold jump in contracts over the past three years to just two customers: Microsoft and Anthropic. Together they represent 85% of the $103 billion total contract value Nscale highlighted before going public. The company also cautioned investors that "a substantial portion of our revenue is driven by a limited number of our customers."

Microsoft has inked several agreements with Nscale since late 2025 that total about $43.8 billion and run through 2033. In August, Nscale also agreed to provide Anthropic with $44.6 billion worth of computing capacity. That Anthropic pact comes with strict milestones for steady performance, and the filing says it can be terminated if Nscale falls short.

The big headline numbers do not translate into immediate revenue. Only $2.6 billion of Nscale's contract value was live by the end of August. And while the business is scaling fast, it is not profitable: for the first six months of the year, the company posted a $1.02 billion loss on $140.6 million in sales.

The Financial Times has reported Nscale is aiming for a New York listing that could value it at up to $35 billion. An Nscale spokesperson declined to comment.

Anthropic buildout, shifting partners, and who Nscale is up against

To serve Anthropic, Nscale plans to install racks and gear at an eight gigawatt site in West Virginia it bought earlier this year, with the first two gigawatts slated to come online in 2028. The filing also says Nscale did not yet have binding financing commitments for the Anthropic arrangement.

This market has become a tight circle of AI developers and chipmakers doing deals with one another, which some critics view as a warning sign for a bubble. Among its rivals are the neocloud players CoreWeave Inc. and Nebius Group NV, which have emphasized having a wider spread of customers. In March, Bloomberg Intelligence said Microsoft and Meta Platforms Inc. were likely responsible for about half of Nebius's yearly revenue. Microsoft accounted for roughly 67% of CoreWeave's 2025 sales, though CoreWeave has diversified.

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There have been some reshuffles. In April, OpenAI backed away from plans to build its Stargate infrastructure projects alongside Nscale in Norway and the UK. Microsoft agreed to assume control of the Norway data center from OpenAI, and Bloomberg reported that Alphabet Inc.'s Google intended to take OpenAI's place in the UK.

Bloomberg has also reported discussions between Nscale and TikTok parent ByteDance Ltd., though Nscale's filing does not mention ByteDance. The filing notes that Nscale competes with Google in cloud computing but does not list any Google contracts.

Analysts are cautious on the space. On Monday, Rothschild & Co. Redburn initiated research on Nscale's publicly listed rivals and assigned a sell rating, pointing to lease commitments and heavy reliance on debt. They added that sales growth "remains closely linked to the availability of funding and therefore cannot be taken for granted."

Nvidia's tight link and the funding puzzle

Nvidia Corp. is central to Nscale's plans. It is a major shareholder, has invested in multiple rounds, and provides the chips expected to power Nscale's sites. Nvidia also guaranteed roughly $860 million of Nscale's lease obligations and participated in last week's $3.1 billion financing package, receiving $1 billion in the form of convertible notes or non-voting shares. Even so, Nscale said its close Nvidia ties do "not eliminate supply chain risks" that could slow deliveries of the newest AI accelerators.

What this could mean for your money

This story boils down to concentration and cash. Nscale's growth is anchored to multi-year promises from a very small circle, with performance checkpoints and financing still in the mix. If you are watching the IPO or names tied to this buildout, the risk is not just tech delivery, it is also whether funding keeps pace with the ambition.

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