Oct 15 (Reuters) - British artificial intelligence group
Nscale has signed an expanded agreement with Microsoft ( MSFT )
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 ( DELL ), Nscale said.
Microsoft ( MSFT ) did not immediately respond to a Reuters
request for comment.
Nscale will begin supplying Nvidia ( NVDA ) graphics processing
units to Microsoft ( MSFT ) 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 ( AKAAF )
has signed a multi-year deal to supply Microsoft ( MSFT ) 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 ( AKAAF ) and Finland's Nokia
, to help accelerate its data centre buildout.