{
  "id": 3998462,
  "title": "Google and Microsoft were in talks for Nscale compute deal that went to Anthropic",
  "url": "https://urgent.news/2026/08/28/google-and-microsoft-were-in-talks-for-nscale-compute-deal-that-went",
  "topic": "ai",
  "section": "AI",
  "published": "2026-08-28T16:57:21.000Z",
  "source": {
    "name": "Semafor",
    "slug": "semafor",
    "url": "https://www.semafor.com/article/08/28/2026/google-and-microsoft-were-in-talks-for-nscale-compute-deal-that-went-to-anthropic"
  },
  "original_language": "en",
  "account": "Google and Microsoft were engaged in discussions over a potential $45 billion deal with Nscale to rent AI computing capacity from their West Virginia data center project called Monarch. However, the talks ultimately fizzled out, with Anthropic ultimately securing the lease for $45 billion to utilize the first of three buildings at the Monarch campus.\n\nThe AI startup's interest in the Monarch data center highlights how the competition for computing power has reached new heights as AI companies scramble to secure enough capacity for their operations. When fully operational, Nscale expects the project to be one of the largest compute hubs globally.\n\nMicrosoft's involvement ended following a review of its data center portfolio and power generation capabilities. Google, on the other hand, failed to reach an agreement, with the decision reportedly stemming from an internal review of the company's computing needs and capital expenditure management. Neither Google nor Microsoft provided comment on the matter.\n\nDuring Google's earnings call last month, executives mentioned the company's struggles with supply constraints and the need to manage its computing power deployment across its businesses, focusing first on frontier AI development. Alphabet, Google's parent company, has been proactive in increasing its 2026 and 2027 capital expenditure forecasts, posting negative free cash flow last quarter due to significant investments in infrastructure.\n\nAnthropic, the AI startup that secured the lease, plans to use the compute power to support its development ahead of an anticipated IPO. The company has also established several other major computing deals with Fluidstack and SpaceX in recent months.\n\nNscale, the company behind Monarch, is also preparing for an IPO, expected to take place within the next month. As construction begins on the data centers in West Virginia, some residents are expressing discontent and pushing back against the surge in AI data center development, as reported by WV Public Broadcasting.",
  "summary": "Nscale is building one of the world's largest data center campuses in West Virginia, as the battle for compute heats up.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 4,
    "also_reported_by": [
      {
        "outlet": "Times of India",
        "title": "OpenAI, Google, Microsoft and 100 companies warn: ‘Prepare for AI-enabled hacking’",
        "url": "https://urgent.news/2026/08/28/openai-google-microsoft-and-100-companies-warn-prepare-for-ai-enabled",
        "published": "2026-08-28T08:40:01.000Z"
      },
      {
        "outlet": "Digital Trends",
        "title": "OpenAI and more than 100 companies warn an AI cyberattack surge is coming",
        "url": "https://urgent.news/2026/08/28/openai-and-more-than-100-companies-warn-an-ai-cyberattack-surge-is",
        "published": "2026-08-28T09:38:13.000Z"
      },
      {
        "outlet": "TechRadar",
        "title": "OpenAI reveals group calling for greater cybersecurity protection against AI, signs up Microsoft, Google and many more",
        "url": "https://urgent.news/2026/08/28/openai-reveals-group-calling-for-greater-cybersecurity-protection",
        "published": "2026-08-28T10:43:49.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}