UK's Nscale to supply Microsoft with 200,000 Nvidia AI chips

(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)

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