Nvidia-Backed Nscale Strikes $14B Deal to Supply AI Chips to Microsoft
Nvidia-backed British cloud computing startup Nscale Global Holdings has secured a potential $14 billion deal to supply AI chips to Microsoft. The agreement involves delivering approximately 104,000 Nvidia GB300 GPUs to Microsoft via Nscale's 240MW hyperscale AI campus in Texas, with shipments starting in late 2026.
The deal, executed in collaboration with Dell Technologies, marks one of the largest AI infrastructure contracts ever signed. Nscale plans to scale its footprint to 1.2GW over time, with Microsoft holding an option for a second phase of 700MW beginning in late 2027.
Initial deliveries of 12,600 GPUs will commence in Q1 next year from Nscale's Start Campus data centre in Sines, Portugal. While financial details remain undisclosed, comparable contracts suggest the deal could generate up to $14 billion in revenue for Nscale.
