Nscale has agreed to acquire AI software company Anyscale in a deal valued at about $1.65 billion, a move that adds workload orchestration software to its cloud infrastructure business.
The acquisition gives London-based AI neocloud platform Nscale software that helps organizations distribute and manage AI workloads across large collections of servers and data centers. By combining infrastructure with workload management, the company aims to offer customers a single platform for training and running AI models.
Anyscale, headquartered in San Francisco, built its platform around the open source Ray distributed computing framework, which was created by the company’s founding team. While the startup originally focused on helping developers run compute-intensive applications, it shifted its business after generative AI took off, expanding into software for LLM training, inference, reinforcement learning and data preparation. The platform also includes orchestration and developer tools for AI deployments.
The purchase aligns with a trend among neocloud providers. These newer AI cloud companies initially competed by supplying GPU capacity but are now adding software and platform services to capture a larger share of enterprise AI spending. Instead of simply renting compute resources, neoclouds are attempting to deliver more of the tech stack that customers need to build and operate AI applications.
Rapid Expansion
Nscale has expanded rapidly since emerging from a cryptocurrency mining business in early 2024. The company operates AI-focused cloud infrastructure and is developing large data center projects, including facilities in Norway and West Virginia. It plans to pursue an IPO, potentially during the second half of 2026. Former Meta executives Sheryl Sandberg and Nick Clegg serve on the company’s board.
The acquisition follows a period of aggressive investment by Nscale. Earlier this year, the company raised $2 billion in a Series C funding round that valued the business at $14.6 billion. Its investors include NVIDIA, Nokia, Dell, Blue Owl and Norwegian industrial company Aker. Nscale has also established infrastructure partnerships with companies including Microsoft, BT and Nordkraft as it expands its AI cloud platform.
For Anyscale, the agreement follows strong recent growth. The company reported sequential revenue growth of 70% during its latest quarter. All of its approximately 200 employees will become part of Nscale following the acquisition, while the business will continue under the Anyscale brand and keep supporting its existing customers. Financial terms were not disclosed by the companies, although multiple reports valued the deal at approximately $1.65 billion.