Nscale, a new upstart in the artificial intelligence space, is already creating a stir with its audacious vision. The company’s goal is to democratize AI infrastructure throughout Europe. The startup previously announced a commitment to spend $1 billion to purchase 100,000 Nvidia graphics processing units (GPUs) by 2027. This action addresses the rapid inflationary pressure on data centers capable of supporting AI workloads. Additionally, it strengthens Nscale’s position as a leader in the quickly-evolving, AI-driven market.
Founded in 2017, Nscale’s first venture was building a farm of Nvidia GPUs for Ethereum mining. In light of this fast-growing AI sector, it changed course to deliver on the increasing demand for AI infrastructure. Recently, Nscale had considerable momentum. Most recently, back in December, they announced a successful $155 million fundraising round, led by Sandton Capital Partners. This new money, along with the $700 million or so Nvidia has put in thus far, is further proof of the confidence that serious players have in Nscale’s future.
Nscale’s deep strategic partnerships strengthen its position in a rapidly evolving market. The exploratory deal follows the company’s $6.2 billion agreement to partner with Microsoft and Aker on creating “hyperscale AI infrastructure” in Norway over the next five years. This agreement is a notable achievement in the EU’s efforts to forge a strong AI ecosystem on the continent. At the time, Microsoft President Brad Smith underscored the importance of this collaboration. He pointed out that meaningful capital investments need strong commitments to utilize new infrastructure after it is established.
The Nscale program is quickly growing and gaining traction. In such times, it is no wonder that the U.K. has been named an AI infrastructure partner for industry titans including Nvidia, Microsoft and OpenAI, as these tech powers expand their operations in the U.K. The startup is now working with UAE’s Open Innovation AI to launch a truly jaw-dropping 30,000 GPUs. During the project’s first stage, beginning in early 2024, OpenAI will use 8,000 of those GPUs. There is still potential to grow this capacity to around 31,000 GPUs in the long-term.
Nscale intends to operate 23,040 Nvidia Blackwell GPUs at its facility. These 2,500 powerful GPUs are scheduled to be delivered in the first quarter of 2027. By end of 2027, Nscale hopes to have 350,000 GPUs up and running. The company’s growth trajectory is stunning and should make their industrial peers blush. Its data center pipeline increased in just a single year from 300 megawatts to an amazing 1.3 gigawatts.
This was acknowledged by industry experts who applauded Nscale’s contributions to enhance Europe’s AI landscape. Josh Payne highlighted that this initiative marks a “huge win for European-owned AI infrastructure.” He further noted that the continent requires substantial AI infrastructure projects to effectively deploy computing power and stimulate economic growth.
Nvidia CEO Jensen Huang has voiced strong support for Nscale’s vision, expressing confidence in its potential to become a “national champion for AI infrastructure in the U.K.” This strong sentiment is indicative of wider industry recognition of the potential and growing need for strong AI infrastructure in Europe. Nick Patience pointed out that Nscale represents “a key part of Nvidia’s push in the U.K. market,” emphasizing the necessity for governmental support in building this crucial infrastructure.
For example, Nscale, who recently purchased Kontena, has focused on high performance computing data centers since 2018. This acquisition further enhances Nscale’s already impressive capabilities. With substantial backing and a clear strategic direction, Nscale is well-positioned to lead the charge in establishing essential AI infrastructure across Europe.