UK's Nscale to supply Microsoft with 200,000 Nvidia AI chips
British AI group Nscale has expanded its agreement with Microsoft to supply 200,000 Nvidia AI chips for data centers in Europe and the U.S. The deal, potentially worth up to $14 billion, will be executed with Dell Technologies. Nscale will start supplying Nvidia GPUs from its Texas and Portugal data centers next year and plans to expand operations in Texas. This follows a previous agreement to supply 52,000 Nvidia GPUs from a joint venture with Norway’s Aker. Nscale recently raised $1.1 billion to accelerate its data center development.
Oct 15 (Reuters) - British artificial intelligence group Nscale has signed an expanded agreement with Microsoft (MSFT.O) to deploy around 200,000 Nvidia (NVDA.O) AI chips across its data centers in Europe and the United States, it said on Wednesday.
While Nscale did not disclose the financial terms of the agreement, the Financial Times, based on a comparable contract, reported that the deal could bring in up to $14 billion in revenue for the start-up.
The deal will be executed in collaboration with Dell Technologies (DELL.N) , Nscale said.
Microsoft did not immediately respond to a Reuters request for comment.
Nscale will begin supplying Nvidia graphics processing units to Microsoft via its data centers in Texas and Portugal starting next year. The company also plans to expand its Texas operations over the coming years.
The agreement builds on earlier plans announced by Nscale. It said its joint venture with Norway’s Aker (AKER.OL) has signed a multi-year deal to supply Microsoft with around 52,000 Nvidia GPUs from its hyperscale AI campus in Narvik, Norway.
The start-up in September
raised $1.1 billion
from investors, including Aker and Finland’s Nokia (NOKIA.HE) , to help accelerate its data centre buildout.
