Finance
UK's Nscale to supply Microsoft with 200,000 Nvidia AI chips
Published by Global Banking & Finance Review®
Posted on October 15, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 15, 2025
2 min readLast updated: January 21, 2026
Nscale partners with Microsoft to supply 200,000 Nvidia AI chips, potentially generating $14 billion, with operations in Texas and Portugal.
(Reuters) -British artificial intelligence group Nscale has signed an expanded agreement with Microsoft to deploy around 200,000 Nvidia 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, 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 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, to help accelerate its data centre buildout.
(Reporting by Disha Mishra in Bengaluru; Editing by Harikrishnan Nair)
Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think and learn like humans. AI can perform tasks such as speech recognition, decision-making, and problem-solving.
Nvidia AI chips are specialized processors designed by Nvidia to accelerate artificial intelligence applications. They are widely used in data centers for tasks like machine learning and deep learning.
A data center is a facility used to house computer systems and associated components, such as telecommunications and storage systems. It is crucial for managing and storing large amounts of data.
A joint venture is a business arrangement in which two or more parties agree to pool their resources for a specific task or project while remaining independent organizations.
Venture capital is a form of private equity financing that is provided by venture capital firms to startups and small businesses with long-term growth potential in exchange for equity, or ownership stake.
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