TLDR
- UK startup Nscale has secured major partnerships with Nvidia, Microsoft, and OpenAI for AI infrastructure projects worth billions
- Nvidia CEO Jensen Huang invested £500 million in Nscale and predicts the UK will become an “AI superpower”
- Microsoft committed $15.5 billion to build the UK’s largest supercomputer with Nscale in Essex
- Nscale emerged from crypto mining firm Arkon Energy in 2024 and raised $155 million in Series A funding
- The company plans to deploy 350,000 GPUs by 2027 across multiple European data centers
Nscale, a UK cloud computing startup that emerged from stealth just over a year ago, has landed major partnerships with tech giants Nvidia, Microsoft, and OpenAI. The deals represent billions in investment for AI infrastructure projects across the UK and Europe.
Nvidia CEO Jensen Huang announced a £500 million equity investment in Nscale during a London press conference. Huang declared that “the UK is going to be an AI superpower” and praised the country’s universities and AI companies like DeepMind.
The semiconductor boss said Nvidia is selling 120,000 graphics processing units to the UK as part of an £11 billion investment. About 70% of the cost covers computing and networking equipment, while 30% goes toward land, power, and data center structures.
Microsoft has committed $15.5 billion in new investment for computing equipment. The software giant plans to work with Nscale to build what will become the UK’s largest supercomputer in Loughton, Essex.
The facility will initially house 23,040 Nvidia Blackwell GPUs set for delivery in early 2027. When operational, it will generate 50 megawatts of AI capacity that can scale to 90 megawatts.
Major Partnership Announcements
OpenAI said it would launch a UK version of its Stargate project through partnerships with Nscale and Nvidia. The first phase will deploy 8,000 GPUs early next year, with potential expansion to 31,000 GPUs over time.
Stargate UK will operate across multiple sites, including Cobalt Park in Newcastle. The project originated in the US as part of President Trump’s push for AI infrastructure investment.
Nscale also signed a five-year $6.2 billion agreement with Microsoft and Norwegian company Aker. The deal focuses on developing “hyperscale AI infrastructure” in Europe, particularly in Norway.
The company previously announced plans for a data center in Norway with OpenAI, committing $1 billion to the project. The goal is to install 100,000 Nvidia GPUs at the site before 2027.
Rapid Growth from Crypto Roots
Nscale spun out from cryptocurrency mining firm Arkon Energy in May 2024. The parent company was established in 2021 to provide infrastructure for crypto mining before pivoting to AI workloads.
After exiting stealth, Nscale’s first major announcement came with a partnership to deploy 30,000 GPUs for UAE’s Open Innovation AI. The company also acquired Kontena, a specialist in high-performance computing data centers.
In December, Nscale raised $155 million in Series A funding led by Sandton Capital Partners. The round included participation from Kestrel0x1, Blue Sky Capital Managers, and Florence Capital.
The startup has grown its AI data center pipeline from 300 megawatts to 1.3 gigawatts. It aims to have 350,000 GPUs running by the end of 2027.
Infrastructure Challenges Ahead
Building AI data centers requires massive capital investment and reliable power sources. Huang warned that securing enough electricity remains “a challenge” for powering data centers.
The Nvidia CEO said nuclear power and gas turbine power stations would be needed to meet demand. He urged the UK to develop its own AI systems despite major US investment in the country.
“Every country should create its own AI,” Huang said. “The data belongs to you. It belongs to your people. It’s created by your people, your companies.”
China recently moved to ban its AI firms from buying Nvidia chips in an escalating geopolitical battle over AI dominance. Huang expressed disappointment with the reported ban, saying collaboration would be safer than isolation.
Nscale CEO Josh Payne aims to deploy 50,000 GPUs by the end of 2025 and 150,000 by 2026. The company previously sought $1.8 billion in private credit funding through Goldman Sachs bankers.
