Nvidia has committed $683 million to Nscale, a London-based AI infrastructure company that spun off from cryptocurrency mining provider Arkon Energy in May 2024. The partnership aims to scale the UK's AI capacity to 60,000 GPUs by 2026 as part of a broader £11 billion national AI infrastructure initiative. Nscale, which operates in the 'neocloud' sector, provides flexible AI computing power without requiring companies to purchase their own hardware.
The investment aligns with the UK government's push for sovereign AI capabilities, following Prime Minister Keir Starmer's 50-point AI action plan announced in January. Nscale CEO Josh Payne emphasized that sovereign AI infrastructure is key to national resilience, economic growth, and strategic autonomy. The announcement coincided with President Donald Trump's UK visit, where American companies pledged £31 billion in investments.
Nscale has secured major partnerships beyond Nvidia, including a $6.2 billion deal with Microsoft to rent computing power from its Norwegian facilities and a collaboration with OpenAI for the Stargate UK initiative. The company's Norwegian data center, located above the Arctic Circle, repurposed a green ammonia factory site and provides access to 230 megawatts of clean hydropower.
Despite the neocloud industry facing pricing pressures due to eased AI chip supply constraints, Nscale's government backing and partnerships with tech giants may provide competitive advantages. Industry experts predict consolidation as smaller players struggle, with GPU hour prices dropping from tens of dollars to just a few dollars.
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