Nscale buys AI software firm Anyscale for $1.65B to move up the stack
What's the deal? Cloud provider Nscale has agreed to acquire San Francisco-based software startup Anyscale for about US$1.65 billion, according to a person familiar with the deal. Anyscale makes software that helps AI workloads run more effectively across separate servers and data centres. All of its roughly 200 employees will join Nscale.
What's the endgame? London-based Nscale leases AI-focused computing power and is building large data centres, including sites in Norway and West Virginia. Folding in Anyscale's software lets customers train, fine-tune, and run AI models in one place.
Why now? Nscale was formed from a cryptocurrency mining business in early 2024 and has become a prominent data centre newcomer riding the AI boom. In 2025, the company said it plans to IPO, potentially as soon as the second half of 2026. Its board includes former Meta executives Sheryl Sandberg and Nick Clegg.
By the numbers: Anyscale reported 70% revenue growth in its most recent quarter compared with the previous period. It had raised funds in 2022 above a US$1 billion valuation.
The signal: A wave of new computing providers, known as neoclouds, is racing to differentiate through software. In May 2026, rival Nebius Group agreed to spend US$643 million on Eigen AI. "If you look at the other neoclouds, everyone's wanting to move up the stack," said Dan Bathurst, Nscale's chief product officer.
Read more: The Edge Malaysia
